S&P upgrades Greek banks’ ratings

Standard & Poor’s on Tuesday upgraded the credit ratings for Greece’s four systemic banks, citing significant progress achieved by the latter.

Specifically, S&P raised the credit rating for National Bank of Greece (NBG) and Eurobank to BB+ from B+, while maintaining their outlook positive.

Additionally, S&P raised Alpha Bank’s credit rating to BB- from B+, with a stable outlook, while raising the credit rating for Piraeus Bank’ to B+ from B, also with a positive outlook.

In a statement, the credit rating firm said Greek and Cypriot banks will benefit more after several years of restructuring their balance sheets, as well as from a restoration of profitability and higher interest rates.

S&P added that Greek banks have made significant progress towards balancing financial profiles, due to a strong deposit base and a significant leverage of balance sheets, which allows them to easily repay long-term loans extended by the European Central Bank.