Moody's

The crisis from the coronavirus pandemic is expected to constitute no more than a transitional shock for the Greek economy, estimates Moody's, stressing that the country's credit profile continues to be on an improvement course even though this was interrupted by the Covid-19 lockdown.

Greek banks will be able to face challenges to profitability from the coronavirus crisis with the help of increased funding from the European Central Bank, credit rating agency Moody's said in a credit outlook report on Thursday.

On May 19, 2020 International Investment Bank successfully executed the second transaction under its MTN Programme, which was registered this March on the Dublin Stock Exchange. Czech koruna (CZK)-denominated bonds in the total volume of CZK 621 million (approximately EUR 22,6 million) were issued with a maturity of three years and will be listed on Euronext Dublin.

Credit sector stocks led the benchmark of the Greek bourse further below the 600-point mark on Wednesday. It followed the relegation of the domestic banks' outlook from positive to stable by Moody's, and the restructuring of the MSCI index, which also sent trading volume to its highest point in 15 sessions.

International ratings agency Moody's on Friday postponed the scheduled publication of a report on Greece's economy, effectively maintaining a wait-and-see stance, leaving the country's "B1" rating and "stable" outlook unchanged from a report issued on April 17.

The Greek bourse had a very quiet Friday, recording the lowest turnover since early March, as traders waited for the Eurogroup decision and Moody's verdict on Greece. The benchmark managed to stay afloat even though it ended on the day's low, with the blue chip index turning red.

Traders' reaction on Tuesday to two sessions of significant losses for stocks was encouraging for the benchmark and blue chips, but rather disappointing in terms of turnover. The market appears to be waiting for Moody's verdict on the economy on Friday.

This week - most probably on Wednesday - Piraeus Bank will open the book for the issue of its Tier II bond amounting to 500 million euros.

The Government of Hungary increased its share in the paid-in capital of International Investment Bank (IIB) contributing an amount of 10 million euro on January 15, 2020. This continues a new round of capitalisation of the Bank.

Citigroup anticipates multiple credit rating upgrades for Greece this year by the four main agencies (Moody's, Standard & Poor's, Fitch and DBRS Morningstar), estimating that the country will make four bond market forays to draw a total of 10 billion euros in 2020.