Eurobank S.A.’s Ratings Upgraded; Outlook remains Stable

Eurobank S.A.’s Ratings Upgraded; Outlook remains Stable

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has raised the Long-Term Foreign Currency Rating (LT FCR) of Eurobank S.A. (Eurobank) to ‘BB-’ from ‘B+’. CI Ratings has also upgraded Eurobank’s BSR to ‘bb-’ from ‘b+’ and its CFS rating to ‘bb’ from ‘bb-’. The Outlook on the LT FCR and BSR remains Stable. At the same time, CI has affirmed the Bank’s Short-Term Foreign Currency Rating (ST FCR) of ‘B’ and ESL of Uncertain.

The upgrade of the ratings is mainly driven by the substantial improvement in the Bank’s asset quality, especially in 2021, which in turn reduced residual risks to capital. The strengthened profitability in 2021 through abating cost of risk as the Bank made substantial progress with its non-performing exposures (NPEs) clean-up process, coupled with stronger fee generation and lower one-off costs, are…