Yesterday, Moody's rating agency confirmed that there has been no rating effects on National Bank of Greece's covered bonds, regarding a bond transaction amendment.
The modification will let bondholders of any kind sell off a pro rata share of the cover pool, following an issuer's default or relevant series extension. If the sale revenues are not enough to repay the associated series, the outstanding assets will solely hold up the other series. Bondholders who chose a sale, have no right on the assets that back up the other series.
The credit agency has decided that the amendment will not affect the current rating of the covered bonds. Moody's ranking identifies the credit impact relevant to the proposed amendment only. The international credit bureau has not offered any opinions concerning if the amendment may contain additional non-credit associated effects, that could have negative interest consequences.