Possible downgrade for Piraeus Bank Bulgaria deposit ratings

Moody's Investors Service has placed on review for possible downgrade the Baa2/Prime-3 long-term and short-term local currency and Baa3/Prime-3 long-term and short-term foreign currency deposit ratings of Piraeus Bank Bulgaria AD (PBB). This follows Moody's decision to place on review for possible downgrade all the ratings of the Greek parent, Piraeus Bank SA.
At present, PBB's Baa2 long-term local currency deposit rating incorporates a three-notch uplift from its Baseline Credit Assessment (BCA) of Ba2 to reflect Moody's assessment of the probability of support from its parent bank. The rating review will focus on reassessing the ability and the willingness of the Greek parent to support its Bulgarian subsidiary and determining the appropriate level of uplift to be incorporated into PBB's ratings.
As regards the long-term foreign currency deposit rating of Baa3, which is currently constrained by the foreign currency deposit ceiling for Bulgaria, it could become aligned with the local currency deposit rating, should the latter be lowered.