In the upgrading of the credit rating of Alpha Bank and her Piraeus Bank Today (18.3.2025) the Moody’s Credit Evaluation House proceeded (18.3.2025), after upgrading the Greek State’s debt to the BAA3 investment level from BA1 on Friday (14.3.2025).
Moody’s upgraded Alpha Bank’s Senior UNSECURED’s deposit and publications from BAA3, keeping his prospects positively. He also upgraded to BAA2 from BAA3 the Piraeus Bank’s debt, changing the prospects to positive from constants.
The Baseline Credit Assessment (BCA) for both Alpha Bank and Piraeus has been upgraded to BA1 from BA2 for both Alpha Bank and Piraeus.
Yesterday (17.3.2025), Moody’s upgraded the debt of National and Eurobank to BAA1 from BAA2 with steady perspectives as well as Attica Bank’s worthy BA2 from B1.
Alpha Bank’s upgrade reasons
Moody’s notes that Alpha Bank’s BCA was upgraded to BA1 by BA2, reflecting further improvements in the quality of the bank’s loans, with its non -performing openings (NPE) decreasing 3.8% of loans in December 2024 from 6% in December 2023.
The house says, among other things, that it expects further improvement in the quality of Alpha Bank’s assets, with its administration targeting a NPE index of less than 3% by 2027. At the same time, the bank increased the provisions of NPEs to 53% in 2024 from 45% in 2023.
The prospects for long-term deposits and bonds (Senior Unscured) are maintained positive, “reflecting our expectation that Alpha Bank will continue to improve its credit profile for the next 12-18 months. The bank is likely to further increase its profits and levels of capital and reduce its problem loans index, though at a slower pace than before, “the house said.
The reasons for upgrading Piraeus
“The BCA of Piraeus Bank has been upgraded to BA1 by BA2, taking into account the improvements in the bank’s fundamental financial figures, including the stronger quality of assets, strong profits in combination with the very low cost base and continuing comfortable funding.”
Among other things, it says that the bank’s non -performing loan index decreased to 2.6% in December 2024 from 3.5% in December 2023, while NPE forecasts further increased to about 65%.
“The upgrade also reflects our expectation that improved bank quality of assets will be maintained, with new NPE inputs remaining at very low levels, indicating the good quality of new borrowing in recent years.”