DBRS lifts Piraeus Bank

DBRS said it upgraded Piraeus Bank SA’s ratings, including its long-term senior debt rating to B (high) from B. The bank is the main operating company for Piraeus Financial Holdings Group.

“The upgrade reflects the group’s recent sizeable improvement in asset quality, whilst also noting that it still remains weak by international standards. Our view is that Piraeus should be able to maintain a stronger risk profile compared to the recent past, even when incorporating the expected pressure from high inflation and weaker economic growth, on the back of continued de-risking and net credit expansion as well as more robust coverage against non-performing exposures (NPEs).

“The upgrade also incorporates the strengthening in the group’s capital position, and we expect the group to continue with further internal capital generation supported by higher interest margins and lower credit costs given the improved risk profile,” the agency said in a press release.

The trend is stable.

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