S&P says Greek banks’ credit rating to remain unchanged because of capital controls‏




Standard & Poor’s on Friday said it was not expecting to raise its “D” rating on Greek banks while current capital controls remain in place, despite the successful completion of their recapitalization plans.

In a report, S&P said that the four systemic banks (National Bank, Alpha Bank, Piraeus Bank and Eurobank) will need between 2-4 billion euros in additional provisions, on top of the ECB’s baseline scenario, to adequately cover non-performing assets.

The credit rating agency said that the capital being raised by the banks will only be enough to absorb the losses that they are expected to post over the next 12 to 18 months. The banks must plug a capital shortfall of 14.4 billion euros uncovered by a European Central Bank review last month under an adverse scenario. Based on the baseline scenario the capital gap was 4.4 billion euros.

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