Fitch downgrades four Greek banks

Fitch has revised downwards the ratings of National Bank of Greece (NBG), Alpha Bank, EFG Eurobank and Piraeus Bank, due to anticipated fiscal adjustments in Greece will affect to a even larger extent the profitability and asset quality."In particular, Fitch believes the required fiscal tightening that needs to be made by the Greek government will have a significant effect on the real economy, affecting loan demand and putting additional pressure on asset quality. The latter could result in higher credit costs, ultimately weakening underlying profitability", Fitch said in its report.Fitch has also cut bank's individual ratings of the four banks from "B/C" to "C".However, the rating agency has affirmed ATEBank long-term loan at "BBB" and short-term loan rating at "F3".

On December 22, Moody's downgraded several Greek banks on profitability fears given the deterioration of the country's public finance and weakening economy as well as the government's incapacity to support them, shortly after Greece's sovereign downgrade.Moody's lowered deposits and credit ratings of National Bank of Greece to "A1" from "Aa3", and of EFG Eurobank from "A1" to "A2". At the same time, Moody's downgraded Emporiki Bank, the Greek subsidiary of the France-based Credit Agricole, from "A1" to "A2".