Moody's may cut Greek banks

Moody's Investors Service said it placed on review for possible downgrade all the ratings of eight Greek banks following the agency's recent decision to place Greece's B1 local- and foreign-currency government bond ratings on review for possible downgrade.

The affected banks are: National Bank of Greece SA, EFG Eurobank Ergasias SA, Alpha Bank AE, Piraeus Bank SA, Agricultural Bank of Greece, Attica Bank SA, Emporiki Bank of Greece and General Bank of Greece.

The sovereign review was prompted by revisions to fiscal metrics, most notably the significant upward revision of the 2010 general government deficit to 10.5%, and increased uncertainty about the sustainability of Greek sovereign debt in the context of potential delays in the achievement of fiscal consolidation targets, Moody's said.

The agency also said it has concerns about the probability and implications of a delayed and weaker economic recovery.

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