The credit rating agency Standard & Poor’s has upgraded the ratings of Greece’s four systemic banks, maintaining a positive outlook for their future performance.
According to ERT, Alpha Bank’s rating has been raised to "BB" from "BB-," Eurobank’s to "BB+" from "BB," National Bank of Greece’s to "BB+" from "BB," and Piraeus Bank’s to "BB" from "BB-." The agency attributed these upgrades to several key factors, including a significant reduction in non-performing loans, positive economic momentum driven by strong investment activity linked to the Recovery Fund, and the distribution of dividends by the four banks for the first time in 16 years. This dividend distribution reflects improved profitability and enhanced capitalization.
Standard & Poor’s highlighted that the reduction of “red loans” (non-performing loans) has been pivotal in stabilising the financial health of these banks. The Greek economy's positive dynamics, fueled by substantial investment activity, have also played a crucial role in this improved outlook.
Additionally, the recent decision by these banks to distribute dividends is a milestone, signalling a return to profitability and stronger capital positions. This move underscores the progress made in the banking sector, marking a significant recovery period after years of financial challenges.
The upgrades by Standard & Poor’s reflect confidence in the resilience and growth potential of Greece’s banking sector, bolstered by ongoing economic improvements and strategic financial management within these institutions.