S&P raises outlook and credit ratings of Greek banks

Standard & Poor's on Tuesday raised the outlook of credit ratings of Greek banks citing significant progress achieved by the financial institutions.

More specifically, S&P raised

• National Bank's and Eurobank's credit rating to BB+ from B+ and kept their outlook positive
• Alpha Bank's credit rating to BB- from B+ with stable outlook
• Piraeus Bank's credit rating to B+ from B with positive outlook
• Aegean Baltic Bank to B+ from B with stable outlook
• Eurobank Holdings to B from B- with positive outlook
• Alpha Services and Holdings to B from B- with stable outlook
• Piraeus Financial Holdings outlook to positive from stable.

In an announcement, the credit rating agency said Greek and Cypriot banks will benefit more after a multi-year restructuring of their balance sheets, from restoring profitability and higher interest rates. It added that these banks have made significant progress towards balancing their financial profiles, thanks to strong deposit base and a big leverage of balance sheets, which brings them to a comfortable position to repay long-term loans taken from the European Central Bank.