21st Jul 2021 21:15
(Alliance News) - Moody's Investors Service has on Wednesday upgraded Bank of Cyprus Public Co Ltd and Hellenic Bank Public Co Ltd's long-term bank deposit ratings to B1 from B3.
The outlook on both banks' long-term deposit ratings is positive.
Bank of Cyprus Public Co Ltd is a part of London-listed Bank of Cyprus Holdings PLC. Shares in the company closed 0.6% higher on Wednesday at 89.20 pence each.
Moody's said the upgrade of the ratings of the two banks captures their strengthened standalone credit profiles and more specifically their improved solvency, providing increased buffers to the banks to navigate the still challenging operating conditions following the coronavirus pandemic.
The positive outlooks, meanwhile, reflect Moody's expectations that the two banks will continue to improve their solvency profiles, despite potential new nonperforming loan formation as a consequence of the challenging environment.
Going forward, Moody's said the ratings could be upgraded in the coming quarters if the banks maintain their strong capital and liquidity, the impact of the coronavirus pandemic on the Cypriot economy is contained and they manage to improve their asset quality profiles through means including asset sales.
By Evelina Grecenko; [email protected]
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