National Bank of Greece ADR (fka NBGGY)

[Sundance2]

Some good news on down day...

October 19, 2017 10:38 ET (14:38 GMT)







The following is a press release from Fitch Ratings:

Fitch Ratings-Milan/London-19 October 2017: Fitch Ratings has assigned National Bank of Greece S.A.'s (NBG, RD/RD/ccc) Series 7 EUR750 million mortgage covered bonds due October 2020 a 'B' rating with Positive Outlook.

The covered bonds are issued under NBG's covered bond programme II (NBG II). All previous outstanding bonds totalling EUR700 million were cancelled on 9 October 2017.

KEY RATING DRIVERS

- The rating of the covered bonds is capped by Greece's 'B' Country Ceiling. The Positive Outlook reflects that on Greece and the strong protection offered via the 25% minimum contractual over-collateralisation (OC), which the agency views as sufficient to sustain stresses above the 'B' rating and which provides more protection than the 5.3% 'B' breakeven OC.

NBG II benefits from a one-notch recovery uplift from the 'B-' rating floor that is represented by NBG's 'ccc' Viability Rating as adjusted by the Issuer Default Rating (IDR) uplift of two notches. In a scenario of defaulting covered bonds, Fitch would expect at least good recovery prospects as the cover pool comprise Greek residential loans secured by mortgages.