Fitch upgrades banks’ covered bonds to B from B-

Fitch announced yesterday the upgrade of the Greek banks’ covered bonds to B from B- following the upgrade of the Greek sovereign to B- from CCC last week.

Specifically all covered bonds issued by Alpha Bank, National Bank and Piraeus Bank were upgraded to B from B-, with the outlook being set as positive in the case of NBG and PB and stable for the bonds issued by Alpha Bank.

The agency stated that the prospects of the aforementioned bonds are positive given that they are backed by mortgages, while the difference in the outlook reflects the level of overcollateralization.

Interestingly, the agency has not upgraded so far the individual ratings of Greek banks which remain at Restricted Default.

Source: capital.gr