S&P could cut Greek banks

Standard & Poor's said it placed its CCC+ long-term counterparty credit ratings on Alpha Bank AE (Alpha), Eurobank Ergasias SA, National Bank of Greece SA (NBG) and Piraeus Bank SA on CreditWatch with negative implications.

At the same time, the agency lowered the rating on the banks' subordinated debt to C from CC and affirmed the C short-term counterparty credit rating.

The CreditWatch placement reflects the possibility that S&P could lower the ratings if it believes the support of the European authorities and the European Central Bank for Greek banks has become less predictable or is unlikely to be commensurate with what it currently factors into its assessment of liquidity and capital.

The agency also believes that the continued access of Greek banks to support from European authorities is dependent on the new Greek government's signing of an agreement with official creditors, including the European Central Bank.

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