Fitch gives Piraeus notes B

Fitch Ratings said it gave an expected B rating to the planned subordinated tier 2 notes to be sold by Piraeus Financial Holdings SA (Holdco).

The agency also assigned Holdco a BB- issuer default rating with a positive outlook. Holdco owns Piraeus Bank SA.

“The ratings of the HoldCo and Piraeus are equalized as Fitch believes that the risk of default of the two entities is substantially the same. This is because Fitch expects that the HoldCo will not build up significant double leverage beyond 120% and believes that liquidity at the HoldCo is managed prudently with appropriate contingency plans,” the agency said in a statement.

The outlook is in line with the outlook on Piraeus Bank.

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