S&P rates Piraeus Financial B-

S&P said it withdrew its ratings on the former bank Piraeus Bank SA and assigned a B- rating to the new non-operating holding company Piraeus Financial Holdings SA.

“The ratings withdrawal on Piraeus Bank SA follows the bank’s split into two new entities, namely Piraeus Bank SA, the new operating entity; and Piraeus Financial Holdings SA, a NOHC. After the transaction, Piraeus Bank SA ceased to exist as a credit institution, and its corporate name was changed to Piraeus Financial Holdings SA, while most of its activities, assets and liabilities were transferred to a newly created Piraeus Bank SA. fully owned by the holding company,” S&P said in a press release.

“This transformation is part of the strategic actions taken by the group aiming at de-risking its portfolio. The hive down paves the way for the two expected securitizations of nonperforming exposures (NPEs) planned for 2021, enabling the bank to record losses at the NOHC level without triggering deferred-tax credits law,” the agency said.

The outlook is stable.

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