Moodys places ratings on Piraeus Bank Bulgaria on credit watch negative.

By bne IntelliNews March 5, 2010
The international credit rating agency Moodys has placed on review for possible downgrade the Baa2/Prime-3 long-term and short-term local currency and Baa3/Prime-3 long-term and short-term foreign currency deposit ratings of the countrys seventh largest Piraeus Bank Bulgaria. The action follows a similar decision concerning all the ratings of the parent, Greece s Piraeus Bank SA. Only the financial strength rating of the local lender has remained unaffected. The long-term local currency deposit rating of Piraeus Bank Bulgaria incorporates three-notch uplift from its baseline credit assessment to reflect Moody's assessment of the probability of support from its parent. The review will focus on reassessing the ability and willingness of the Greek bank to support its local subsidiary and determining the appropriate level of uplift to be incorporated into the ratings of Piraeus Bank Bulgaria . The long-term foreign currency rating is constrained by the sovereigns rating currently and could remain in line with the local currency one if the latter is downgraded. The foreign currency rating may also face downward correction in case of any future further reduction in the local currency rating. In January, Moodys upgraded the outlook on the Baa3 long-term foreign currency deposit rating of Piraeus Bank Bulgaria from stable to positive on similar action of the sovereign rating.

Related Articles

EC urges Bulgaria to comply with EU rules on free movement of capital.

The EC has sent a reasoned opinion to Bulgaria over failure to comply with EU rules on the free movement of capital, the EC said on its website. The privatisation act in Bulgaria introduces ... more

Govt seeks delay of antitrust rules violation procedure against Bulgaria.

Bulgaria will be seeking an extension of the court procedure filed by the EC against the country over irregularities found in the assignment of digital broadcast spectrum, transport minister ... more

Bulgarians hold EUR 100mn in deposits in Cyprus.

Bulgarian individuals and companies hold EUR 100mn in Cypriot banks according to ECB data, BTA reported quoting Reuters. The largest EU depositors in the crisis-hit country are Greece with EUR ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335