Fitch downgraded covered bonds issued by Alpha Bank, National Bank of Greece (NBG) and Piraeus Bank from B- to CCC late yesterday (Thursday), after having cut the Greek sovereign to CC and Greek banks to RD (Restricted Default).

The rating agency cut the three banks as well as Eurobank Ergasias from CCC to RD on Monday after the imposition of capital controls in Greece. The sovereign was cut from CCC to CC on Tuesday and its country ceiling from B- to CCC.

The covered bonds cut to CCC are those of Alpha Bank AE and Piraeus Bank, as well as Programmes I and II of NBG.

“The downgrade of covered bonds reflect the lower country ceiling, as well as the downgrade of Piraeus’, NBG’s and Alpha’s IDRs to RD and their VR to ‘f’,” said Fitch.

It suspended its Discontinuity Cap (D-Cap) and IDR uplift analysis for the four programmes, noting that the IDRs of RD reflect an uncured payment default on other obligations than the covered bonds.