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Moody's dowhgrades Greek banks

Moody’s downgraded five Greek banks on Monday, citing heightened uncertainty about the new government's ability to reach an agreement with its lenders before the end of the current support programme, which expires at the end of February. 

The ratings agency said it downgraded the long-term deposit and senior debt ratings of Piraeus Bank (to Caa2 from Caa1), National Bank of Greece (to Caa2 from Caa1), Alpha Bank (to Caa2 from Caa1), Eurobank Ergasias (to Caa3 from Caa2) and Attica Bank (to Caa3 from Caa2).
 
"A possible deadlock in the government's negotiations with official creditors could place at risk its own liquidity and funding needs, limiting its ability to support the banks in case if need," Moody’s said in a press release. 
 
The agency also considers that there may be a reduction in the Hellenic Financial Stability Fund's (HFSF) capacity to support the banks in case of need, the agency added.
The ratings were placed on review for further downgrade. Moody's placed Greece's Caa1 sovereign rating on review for downgrade on February 6.