S&P cuts Greek bank and Cyprus Marfin Popular Bank ratings

Standard & Poor's cut the ratings on 7 Greek banks and Cypriot banks due to the potential for more loan losses. S&P downgraded the rating of Marfin Popular Bank (MPB) and Marfin Egnatia Bank from BBB to BBB- with a stable outlook due to the fact that the Group’s asset quality remains vulnerable to a prolonged economic downturn and expectations on a material rise in delinquencies, thus placing increasing pressure on MPB’s profitability.
EFG Eurobank’s rating was cut to BBB+ from A- with a negative outlook. Piraeus Bank is cut to BBB from BBB+ and stable outlook. Emporiki Bank is cut to BBB from A- with stable outlook while the outlook on Ethniki and Alpha Bank is changed from stable to negative but the rating kept unchanged at BBB+.