Moody’s Cuts Ratings of Nine Greek Banks

Moody’s Investor Services (MCO) downgraded nine Greek banks due to a weakening in their financial strength and the country’s difficult economic outlook, the international ratings agency said in a statement Friday.

[FT Alphaville] “Moody’s Investors Service has today downgraded the bank financial strength ratings (BFSRs) as well as the deposit and debt ratings of nine Greek banks to reflect their weakening stand-alone financial strength and the anticipated additional pressures stemming from the country’s challenged economic prospects.”

The move affects National Bank of Greece , EFG Eurobank Ergasias, Agricultural Bank of Greece, General Bank of Greece, Marfin Egnatia Bank and Attica Bank.

The banks’ ratings remain on review for further downgrades which will be completed when the agency concludes its ongoing review of Greece’s sovereign ratings, Moody’s said.

On Thursday, the agency confirmed that it is awaiting to see the contents a EU/IMF rescue package and evaluate the country’s ability to implement it before determining on a possible revision of Greece’s government credit rating.

The country’s A3 sovereign bond is still under review, but a downgrade at this point seems unavoidable. S&P made the downgrade on Tuesday.