Saturday, November 28, 2020
Home World Greek debt crisis: Fitch, S&P downgrade rating for 4 national banks

Greek debt crisis: Fitch, S&P downgrade rating for 4 national banks

Greek_Flag

By NewsGram Staff Writer

Fitch Ratings, one of the internationally recognized statistical agencies downgraded the ratings on four major Greek banks to “restricted default” on Monday.

The decision comes after the government ordered commercial banks to close for a week and established capital controls.

The four banks hit by the downgrade, already rated as CCC or “highly speculative”, were National Bank of Greece, Piraeus Bank, Eurobank Ergasias and Alpha Bank.

According to Fitch, the capital controls, including restrictions on withdrawals by customers, amounted to a restricted default “because the deposit restrictions affect a material part of the banks’ primary obligations.”

The banks’ “viability ratings” — which weigh the banks’ intrinsic creditworthiness — were also downgraded to a bottom-level “f” or “fail”.

“The ratings reflect exceptionally high levels of credit risk, because of the imposition of capital controls as well as poor recovery prospects in the event of the default on senior debt obligations,” said Fitch.

The banks are dependent on the European Central Bank for liquidity and the ECB decision on Sunday not to increase the liquidity due to government action reflects Fitch’s view that “these banks have failed and would have defaulted had capital controls not been imposed”.

Standard & Poor’s Ratings Services also lowered its sovereign rating on Greece to ‘CCC minus’ from ‘CCC’, saying the probability of Greece exiting the eurozone was now about 50 per cent.

Meanwhile, Greece’s Prime Minister Alexis Tsipras made a reference that his country would not make a key debt payment due to the International Monetary Fund (IMF) on Tuesday.

“(How) is it possible the creditors are waiting for the IMF payment while our banks are being suffocated?” he asked during an interview on ERT television on the eve of the payment deadline.

“Once they decide to stop the suffocation, they will be paid”, the Prime Minister further responded.

STAY CONNECTED

19,120FansLike
362FollowersFollow
1,779FollowersFollow

Most Popular

Goddess Sati: The Hindu Goddess Of Marital Felicity And Longevity

Goddess Sati, also known as Dakshayani who is the Hindu Goddess of power and longevity. Sati was the daughter of Daksha, so she is called...

50 Percent Of Anemia Worldwide Is Due To Iron Deficiency: Report

According to the National Family Health Survey, in India, more than 50 percent of children, women of reproductive age, and pregnant women suffer from...

Mandarin Oriental Hotel Group Pledges To Eliminate Single-Use Plastic

One of the leading hotel chains in the world, Mandarin Oriental Hotel Group had pledged to eliminate all single-use plastic, across its portfolio of...

Report: 78% Adults Indians Make A Conscious Effort To Build Immunity

The underlying message from COVID-19 was loud and clear if your immune system is weak or if you are suffering from any lifestyle disease...

The New F&B Destination Of Gurugram- The RYU Resto-Bar At 32nd Milestone

With delectable sushi platters to signature cocktails that leave you wanting more, RYU, a new Asian-themed bar, and diner in Gurugram's popular dining destination...

Tips To Help You Navigate The New Rules Of Dating In 2020

Single Indians are now ready to dip their toes back into dating in real life (IRL) as India unlocks. However, how does one do...

How To Become A Poker Pro

By Carol Trehearn Whether you’re completely new to the game of poker and are really enjoying the games you’ve played so far, or have spent...

A Buying Guide For Lanyards Amid COVID-19

By Cathy Carter COVID-19 has changed the way the world operates. Unimaginable lifestyle changes are adopted. You would have never thought of something as drastic...

Recent Comments