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Moody's Upgrades Bank of Cyprus and Hellenic Bank
January 28, 2019
Moody`s Investors Service upgraded Thursday Bank of Cyprus Public Company Limited`s and Hellenic Bank Public Company Ltd long-term deposit ratings to B3 from Caa1, and their long-term Counterparty Risk Ratings (CRRs) to B1 from B2. At the same time, Hellenic Bank`s baseline credit assessment (BCA) and adjusted BCA were upgraded to caa1 from caa2, and its long-term Counterparty Risk Assessment (CRA) to B1(cr) from B2(cr). The outlook on both banks` long-term deposit ratings is positive.
According to Moody’s, the upgrade of Bank of Cyprus` ratings is driven by changes in the bank`s liability structure. In particular, the issuance of EUR220 million of Additional Tier 1 (AT1) securities in December 2018, enhances the buffers that are available to protect depositors and non-debt counterparty financial liabilities captured by the CRR.