Experts see Piraeus Bank strengthening its credit profile
International agencies view the outlook of Piraeus Bank favorably after the formal verdict by the European Central Bank that leads to turning the Greek lender's contingent convertible bonds (CoCos) into common shares, and despite the major drop in third-quarter profits announced.
On Monday Moody's qualified the ECB decision as a credit positive, while Pau Labro, director of Financial Institutions at Fitch Ratings, told Kathimerini's Eleftheria Kourtali on Tuesday that Piraeus' credit profile is strengthened.
For its part, JP Morgan noted that the bank's investment position is gradually improving and that it expected an 85% rally in the lender's stock price by year-end.
Also on Monday, Piraeus, one of Greece's four largest banks, reported a sharp drop in third-quarter profit compared with the previous quarter on the back of higher loan impairment...