Fitch cuts T Bank to B-

Fitch Ratings said it downgraded T Bank SA's (formerly Aspis Bank) long-term issuer default rating to B- from B and kept the rating on Rating Watch evolving. The agency also placed T Bank's B short-term issuer default rating on Rating Watch negative and affirmed its €100.25 million of lower tier 2 notes at CCC/RR6 and €40 million of tier 1 hybrid notes at CCC/RR6.

The agency said the downgrade reflects the bank's difficulties in containing ongoing operating losses as well as its deteriorating capitalization and strained liquidity profile. This is despite the €48.4 million capital increase in April from TT Hellenic Postbank SA when it acquired a 32.9% stake in the bank.

The Rating Watch evolving reflects the agency's opinion that T Bank is likely to be downgraded further if capital is not significantly strengthened.

Conversely, should Postbank - or other third parties - provide further support for T Bank, then this could lead to upside potential for T Bank's ratings, Fitch said.

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