As the possibility of Greece’s exit from the Eurozone heightens, Moody’s Investors Service today announced that it downgraded the ratings of four Greek covered bond programs. The main catalyst for these downgrades was Moody’s lowering of its Greek country ceiling to ‘Caa2.’

The agency dunked the ratings on deals from Cyprus Popular Bank by one notch, to ‘B2’ from ‘B1’, and cut those on Alpha Bank’s bonds by four notches, to ‘Caa2’ from ‘B1.’

Moody’s also made the same four-notch downgrade for the covered bonds issued by Eurobank EFG and National Bank of Greece, lowering their ratings to ‘Caa2’ from ‘B1.’

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.