Last Update: 10:59
Fitch affirmed the four systemic Greek banksÎ„ long-term issuer default ratings (IDRs) at restricted default (RD), while it upgraded the four banksÎ„ viability ratings (VRs) to Î„CCCÎ„ from Î„FÎ„.
According to the agency, the upgrade of the banksÎ„ VRs mainly reflects the banksÎ„ improved, albeit still weak, liquidity.
It also reflects their expectation that successful completion of the second bailout review will reduce political risks, improve confidence and facilitate stronger deposit growth in 2H’17e.
The banksÎ„ IDRs of Î„RDÎ„ reflect FitchÎ„s view that the Greek banks are defaulting on a material part of their senior obligations given that capital controls, through restrictions on deposit withdrawals, are still in place in Greece.