Fitch Takes Credit Rating Actions on Bulgarian, Romanian Subsidiaries of Two Greek Banks

Fitch issued the following statement on Wednesday:

"Fitch Ratings has today taken various rating actions on the subsidiaries of National Bank of Greece (NBG) and Efg Eurobank Ergasias (Eurobank). A full rating breakdown is provided at the end of this comment.

Today's rating actions follow the downgrade of the Long-term Issuer Default Ratings (IDR) of Greece's large commercial banks to 'BBB+' from 'A-' on 8 December 2009 (see separate rating action commentary, dated 8 December 2009, entitled "Fitch downgrades Greek Banks on Sovereign Rating Action", available on www.fitchratings.com). The rating actions reflect the agency's view that, while the Greek banks' propensity to support their international banking subsidiaries remains unchanged, their ability to do so has been reduced as reflected in yesterday's downgrade of their Long-term IDRs.

The bank subsidiaries' Long-term IDRs are based on the institutional support from their shareholders.

National Bank of Greece S.A's subsidiaries:

United Bulgarian Bank

Long-term IDR downgraded to 'BBB' from 'BBB+'; Outlook Stable

Short-term IDR downgraded to 'F3' from 'F2'

Individual Rating affirmed at 'D'

Support Rating affirmed at '2'

The Stable Outlook on the Long-term IDR mirrors that of the parent bank.

Banca Romaneasca S.A.

Long-term IDR affirmed at 'BBB', Outlook Negative

Short-term IDR affirmed at 'F3'

Individual Rating affirmed at 'D'

Support Rating affirmed at '2'

The Long-term IDR of Banca Romaneasca S.A. is affirmed as it was previously constrained by the 'BBB' Country Ceiling of Romania and is therefore not affected by the downgrade of the parent. The bank's Long-term IDR is now one-notch below the parent's, whereas previously it was two notches under due to the Country Ceiling constraint. However, the Outlook of Banca Romaneasca S.A. is constrained by the Negative Outlook on the Romanian Sovereign.

[...]

Efg Eurobank Ergasias S.A. 's subsidiaries:

Eurobank EFG Bulgaria AD:

Long-term IDR downgraded to 'BBB' from 'BBB+'; Outlook Negative

Short-term IDR downgraded to 'F3' from 'F2'

Individual Rating affirmed at 'D'

Support Rating affirmed at '2'

The Negative Outlook on the Long-term IDR mirrors that of the parent bank.

Bancpost S.A.

Long-term IDR affirmed at 'BBB', Outlook Negative

Short-term IDR affirmed at 'F3'

Individual Rating affirmed at 'D/E'

Support Rating affirmed at '2'

The Long-term IDR of Bancpost S.A. is affirmed as it was previously constrained by the Country Ceiling of Romania and is therefore not affected by the downgrade of the parent. The bank's Long-term IDR is now one-notch below the parent's, whereas previously it was two notches under due to the Country Ceiling constraint. The Negative Outlook on the Long-term IDR mirrors that of the parent bank and is in line with the Negative Outlook on the Romanian Sovereign.

In Fitch's rating criteria, a bank's standalone risk is reflected in Fitch's Individual ratings and the prospect of external support is reflected in Fitch's Support ratings. Collectively these ratings drive Fitch's Long- and Short-term IDRs."