Moody''s Investors Service proceeded today with the upgrade of the long-term foreign currency deposit rating of Piraeus Bank SA by 3 notches to A1 from Baa1. The rating agency upgraded the Bank''s credit rating, taking into account its increased financial strength and its current position in the banking market. At the same time, Moody''s upgraded the short-term foreign currency deposit rating and financial strength rating to Prime-1 (from Prime-2) and C (from C-) respectively.
According to Moody''s, which proceeded with the new rating methodologies Joint Default Analysis and BFSR, "The largest rating upgrade was for Piraeus Bank SA, whose long-term deposit and senior debt ratings increased by three notches to A1 from Baa1, reflecting a one notch upgrade of the Bank''s BFSR to C as well as the very high probability of systemic support given the Bank''s sizable domestic market share".
This significant improvement in Piraeus Bank''s ratings will lead to lower funding cost, as well as broadening its debt investor base.