WEDNESDAY, 18 MAY 2022

 

CONNECT

Facebook Linked In Twitter
IMH LTD

Greek Prime Minister meets US President Biden at the White House

Commission To Adapt Delivery Schedules Of Pfizer Vaccines, Kyriakides Says

IMH LTD

SERVICES

brought to you by Barclays

Moody's Upgrades Hellenic Bank's Long-Term Deposits

Moody's Upgrades Hellenic Bank's Long-Term Deposits

Moody’s Investors Service has upgraded Hellenic Bank Public Company Ltd’s long-term deposit rating to Caa2 from Caa3, due to the bank’s large volume of deposits, and has further affirmed the bank’s caa3 baseline credit assessment (BCA).

According to the international credit rating agency, the affirmation of Hellenic’s caa3 BCA takes into account Moody’s assessment of a Very Weak macro profile for Cyprus, driven primarily by the country’s weak funding conditions, brought about by still fragile depositor confidence. 

Credit conditions also remain very weak, with private-sector debt standing at 300% of GDP, with over a third of it built up over the last four years, its report continued to explain.

The macro profile also captures the rating agency’s expectations of a mild economic recovery in 2015, and progressive GDP growth rising to around 2% over the medium term, although the outlook remains vulnerable to private-sector deleveraging and a high stock of problem loans.

Moody’s affirmation of Hellenic Bank’s caa3 BCA also reflects the bank’s weak financial profile, capturing Hellenic’s significant asset-quality challenges which offset its enhanced capital base and ample liquidity buffers. The bank continues to face a large stock of non-performing loans (NPLs) against which cash provisions (loan loss reserves) remain low. 

According to the rating agency, the recent implementation of a more timely foreclosure framework in Cyprus is a positive development for the bank, however it is too early to assess its potential benefit.

Moody’s does, however, acknowledge the bank’s solid liquidity cushion and stronger capital. As of March 2015, cash and placements with banks accounted for 44% of total assets, and including bond investments this ratio increases to 56%.

“This high liquidity buffer mitigates the risks that arise from the high vulnerability of the bank’s funding base, and would allow the bank to withstand large deposit outflows”, it stressed.

Hellenic Bank’s financial profile also benefits from its strengthened capital buffers. Following a successful capital increase completed in December 2014, the bank`s Common Equity Tier 1 Ratio increased to 13.3% against a 7.3% Core Tier 1 capital ratio at end-2013, and its Tier 1 capital ratio, which also reflects around EUR130 million of high-trigger capital securities, increased to 16.2% as of March 2015.

The upgrade of the bank’s deposit ratings to Caa2 from Caa3 takes into account the LGF analysis of the bank’s own volume of deposits and securities subordinated to them in Moody’s creditor hierarchy. 

Hellenic Bank benefits from a large volume of deposits (accounting for 21% of tangible assets), resulting in a low loss given failure.

MORE ON SERVICES

Infocredit Group And Aspon Consulting Join Forces To Help Companies Achieve Their ESG And Sustainability Goals

Infocredit Group, leading provider of business intelligence and innovative risk ...

Give A Job For UA: Support The Employment Of Ukrainian Refugees Around The World

Global Compact Network Ukraine together with Local Network Poland, in partnership with ...

Growth Recorded In The Services And Industry Sectors In 2021, According To Industrialists Federation

Growth was recorded in 2021 in the services and industry sectors, according to a ...

FROM AROUND GOLDNEWS

   

Launch Of Tobacco Heating Product gloTM from BAT In Cyprus, With Benefits For The Local Economy And Society

The tobacco heating product gloTM is being launched in Cyprus by BAT, a leading, multi-category consumer goods business. This move is expected to make a ...
   

MoU On Cooperation Between The Deputy Ministry Of Research, Innovation And Digital Policy And Amazon Web Services

The Deputy Ministry of Research, Innovation and Digital Policy signed today, at the Presidential Palace, a Memorandum of Understanding with Amazon Web Services ...
   

Fire Safety Week by CNP ASFALISTIKI and Cyprus Fire Service

For the 21st consecutive year, CNP ASFALISTIKI and Cyprus Fire Service, join forces in the common effort that aims to prevent fires and deal with them. ...
   

GOLD Magazine Presents The Limassol Issue

Many of GOLD’s readers and advertisers are based in Limassol, the island’s leading international business centre, where world-renowned international firms ...
   

Elisabeth Borne Appointed As New French PM, First Woman To Hold The Position In 30 Years

Centrist politician Elisabeth Borne was appointed France’s new prime minister on Monday to become the second woman to hold the post in the country. ...
   

Softline Computer Systems Ranked In Deloitte’s Middle East Technology Fast 50 Programme 2021

Very important news for Softline Computer Systems, which has been shortlisted by Deloitte in the Middle East Technology Fast 50 Program 2021.
   

Greek Prime Minister meets US President Biden at the White House

The purchase of F-35 aircraft until 2030 was one of the topics discussed between the Greek Prime Minister and US President Joe Biden at the White House on ...
   

Evolve Your Digital Marketing Career With A Global Online Program

What are some powerful ways to help you improve your Digital Career? Firstly you should have a good understanding of customer behaviour which constantly ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

limassol_investment_summit_8/4-2/6
Enter_Cy_10/20-4/23

IMH LTD