Fitch Downgrades 2 Greek Banks' State-Guaranteed Debt to 'CC' on Sovereign Downgrade
The rating actions follow the downgrade of Greece's sovereign Long-term foreign currency Issuer Default Rating (IDR; see 'Fitch Downgrades Greece to 'CC' dated 30 June 2015 at www.fitchratings.com). The banks' other ratings are unaffected and remain driven by the factors noted in our rating action commentary (see 'Fitch Downgrades Greek Banks to RD on Capital Controls', dated 29 June 2015 at www.fitchratings.com).
KEY RATING DRIVERS
GUARANTEED SENIOR DEBT
The government-guaranteed debt issuances are senior unsecured instruments that bear the full guarantee of the Greek state. Fitch rates guaranteed debt at the higher of the senior unsecured debt ratings of the issuer ('C' for both NBG and Eurobank) and the guarantor's Long-term foreign currency IDR. We have no reason to believe that these guaranteed programmes and issues will be treated differently to the other obligations of the Greek state.
RATING SENSITIVITIES
GUARANTEED SENIOR DEBT
Greek banks' government-guaranteed debt ratings are sensitive to any changes in Greece's sovereign ratings.
The rating actions are as follows:
NBG:
State-guaranteed debt (XS0920832846): downgraded to 'CC' from 'CCC'
Eurobank:
State-guaranteed debt (XS0922876882): downgraded to 'CC' from 'CCC'
Long-term state-guaranteed debt programme: downgraded to 'CC' from 'CCC'
Short-term state-guaranteed debt programme: affirmed at 'C'
ERB Hellas PLC:
Long-term state-guaranteed debt programme: downgraded to 'CC' from 'CCC'
Short-term state-guaranteed debt programme: affirmed at 'C'
ERB Hellas (Cayman Islands) Ltd.:
Long-term state-guaranteed debt programme: downgraded to 'CC' from 'CCC'
Short-term state-guaranteed debt programme: affirmed at 'C'
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