By Stelios Orphanides
Moody’s Investors Service said that it has placed the credit rating of Hellenic Bank and the Cyprus Cooperative Bank on review for a possible upgrade following the agreement allowing the Co-ops operations to Hellenic.
Hellenic Bank’s has received a Caa1 long-term deposits rating, a caa2 baseline credit assessment, a B2 long-term counterparty risk rating and a B2(cr) long-term countrerparty risk assessment.
“Moody’s also changed the direction of the review on Cyprus Cooperative Bank Ltd’s Caa2 long-term deposit and long-term counterparty risk ratings, and its Caa1(cr) long-term counterparty risk assessment to review for upgrade from review with direction uncertain,” the rating company said and added that the Co-op’s ca baseline credit assessment and adjusted baseline credit assessment were not affect by the action.
“Both banks’ not prime short-term deposit ratings and short-term counterparty risk rating and their not prime(cr) short-term counterparty risk assessments have been affirmed,” it added.
“The reviews for upgrade of both banks are driven by the Cypriot authorities’ approval of Hellenic’s offer to acquire CCB’s balance sheet consisting of healthy assets, all of its customer deposits, some other liabilities and equity,” Moody’s said.