Moody's assigns Ca to Piraeus notes

Moody's Investors Service said it assigned a Ca(hyb) rating to Piraeus Financial Holdings SA's upcoming additional tier 1 capital notes offering of up to €600 million. The notes will be a stand-alone offering and not from Piraeus’ medium-term note program.

“According to the terms and conditions of the issuance and based on its advanced loss given failure (LGF) analysis, Moody's has assigned a Ca(hyb) rating to this AT1 instrument, which is positioned two notches below its operating bank's (Piraeus Bank SA) baseline credit assessment (BCA) of caa2. This takes into account the elevated credit risks associated to this type of subordinated debt class, given the relatively low cushion available for absorbing losses before the AT1 creditors are impacted in a resolution scenario,” Moody’s said in a press release.

The outlook is positive.

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