S&P downgrades 4 Greek banks

Standard & Poor's said it lowered the long-term counterparty credit ratings to CCC from B on four Greek banks - National Bank of Greece SA, EFG Eurobank Ergasias SA, Alpha Bank AE and Piraeus Bank SA.

The agency also said it affirmed the C short-term ratings on the banks and CCC- ratings on their hybrid securities.

The ratings were removed from CreditWatch with negative implications, where they were placed in December 2010.

The outlooks on all four banks are negative.

The downgrade reflects a view that the four banks face significantly heightened risks to their financial profiles, particularly in terms of their liquidity from domestic retail operations and capital positions, S&P said.

The agency said it believes the banks also face relatively short-term risks of pressure on their domestic retail funding as the public considers the implications of Greece's need for additional funding from official creditors and the framework under which this funding could be provided.

This could include a potential restructuring of public debt that would result in one or more defaults, S&P said.

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