Fitch Ratings upgraded today Piraeus Bank's individual rating to B/C from C, as well as the credit rating outlook to positive from stable.
As quoted in Fitch's press release, these rating actions reflect Piraeus Bank's strengthening position within the Greek banking market, better profitability and efficiency, and improvements to its credit risk management and asset quality.
Piraeus Bank has strongly expanded its retail lending, which has underpinned good revenue generation. This, together with productivity gains, has led to steadily improving profitability, which is likely to continue on the back of continued good prospects for domestic loan growth.
Piraeus Bank's liquidity is supported by rising retail deposits and access to capital markets with different maturity tenors. The Group's capital base is adequate to support the continuing growth. The NPLs account for 2.9% of the loans portfolio (30.06.2006) while the loan loss coverage is satisfactory at 80%.
Piraeus Bank is the fourth largest banking group in Greece by total assets, with 480 branches (288 in Greece) and 8,747 staff at end-June 2006.