Fitch upgrades Marfin Egnatia, affirms MPB ratings

Fitch Ratings has upgraded Marfin Egnatia Bank's (MEB) Long-term Issuer Default rating (IDR) to 'BBB+' from 'BBB' and its Short-term IDR to 'F2' from 'F3' while it affirmed the bank's Individual rating at 'C' and Support rating at '2'. At the same time, the agency has affirmed Marfin Popular Bank's (MPB) Long-term and Short-term IDR 'BBB+' and 'F2' respectively, and its Individual rating at 'C' and Support '2'. The Outlooks for MPB's and MEB's Long-term IDRs are Stable.
According to Fitch, the equalisation of MEB's IDRs with those of its parent, MPB, reflects the successful integration of the MEB into MPB and its importance to the parent, especially given MEB's size within the group.
Fitch argues that MPB's ratings reflect the bank's more cautious organic growth, its resilient profitability, its good cost efficiency, its improving asset quality and its satisfactory capitalisation. The ratings also consider its recent rapid growth abroad in countries where the operating environment is deteriorating rapidly as a result of the global financial market turmoil.