December 19, 2017 / 3:12 PM / in 10 months

Fitch: No Rating Impact on Greek Covered Bonds from RWE on Banks' Viability Ratings

(The following statement was released by the rating agency) MILAN/LONDON, December 19 (Fitch) Fitch Ratings says National Bank of Greece S.A.'s (NBG, RD/RD/ccc/RWE) and Piraeus Bank S.A.'s (Piraeus, RD/RD/ccc/RWE) mortgage covered bonds ratings are not affected by the Rating Watch Evolving (RWE) on the banks' Viability Ratings (VRs). The covered bonds are rated 'B' with Positive Outlook. On 14 December 2017 Fitch placed on RWE the banks' VRs, following the publication of the Exposure Draft: Bank Rating Criteria (see "Fitch Places Certain Bank Ratings on Rating Watch on Criteria Exposure Draft" available at www.fitchratings.com). All the programmes benefit from a cushion against a downgrade of the banks' VRs to 'ccc-', leaving the covered bonds ratings unaffected by the RWE on banks' VRs. At the same time, an upgrade of issuers' VRs to 'ccc+' would not be reflected in the ratings of the covered bonds programmes, as they are currently capped by Greece's 'B' Country Ceiling. The 'B'/Positive rating on the covered bonds is based on the respective 'ccc' VRs as adjusted by the Issuer Default Rating (IDR) uplift of two notches and recovery uplift of one notch (out of the three assigned to all the programmes). Since the banks' IDR are on 'RD', the starting point for the analysis of the Greek covered bonds programmes is the VR, in accordance with Fitch's Covered Bonds Rating Criteria. On 5 December 2017, Alpha Bank AE (RD/RD/ccc/RWE) repurchased and cancelled EUR5 million Series 5 and EUR1 billion Series 6 and no covered bonds are outstanding under the conditional pass-through programme; as a consequence no rating is outstanding for this programme. Contact: Sara De Novellis Analyst +39 02 879 087 295 Fitch Italia S.p.A. Via Morigi 6 20123 Milan Alessandro Bosello Analyst +39 02 879 087 278 Roberto Del Ragno Director +39 02 879 087 206 Media Relations: Athos Larkou, London, Tel: +44 203 530 1549, Email: athos.larkou@fitchratings.com. Additional information is available on www.fitchratings.com ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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