Moody’s changes Eurobank long-term deposits rating to positive from stable

The credit rating agency Moody’s on Tuesday announced that it is changing its rating for the long-term deposits of the Greek systemic bank Eurobank Ergasias to positive from stable, affirming them at Caa2.

“The primary driver of the positive outlook is the transformation plan announced by Eurobank on 26 November, which envisages a merger with Grivalia Properties REIC AE (Grivalia), the second largest real-estate company in Greece, and the deconsolidation of approximately 7 billion euros of nonperforming exposures (NPEs) through the set-up of a holding company structure and a special purpose vehicle (SPV) that will securitise these NPEs. Both of these moves are expected to enhance the bank’s tangible common equity and asset quality, exerting positive pressure on its standalone credit profile and BCA of caa2,” the rating agency said in an announcement.