- Increase in ceiling to BBB-, the lowest IG grade, may lead to Fitch giving IG ratings to Greek covered bonds with sufficient over-collateralization including Alpha Bank and National Bank of Greece notes
- Alpha Bank upgrade to IG would make notes ECB repo-eligible; Commerzbank therefore sees “catch-up potential” for lender’s February 2023 covered bond
- National Bank of Greece notes — already ECB eligible due to S&P rating — would benefit from lower standard risk weights
13
Aug
(Bloomberg) —
Raising of Greek rating ceiling last week paves way for Fitch to upgrade some local covered bonds to IG status, Commerzbank analyst Michael Weigerding writes in an Aug. 13 note.
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