Moody’s downgraded all the Greek mortgage covered bonds it rates – issued by Alpha Bank, Eurobank Ergasias and National Bank of Greece (NBG) – from B3 to Caa2 on Friday and left them on review for further downgrade.

The covered bonds that were downgraded are those issued under Alpha Bank AE’s Direct Issuance Global programme, Eurobank Ergasias’s under its programmes I and II, and NBG’s under its Global covered bond programme and Covered Bond Programme II, according to Moody’s.

The rating agency cited as reasons for the downgrades rating actions on the respective issuers on Thursday and its lowering of Greece’s country ceiling to Caa2, which in turn followed Moody’s downgrade of Greece on Wednesday from Caa2 to Caa3 on review for downgrade.

The Caa3 senior unsecured ratings of the banks – as well as those of Piraeus Bank and Attica Bank – were put on review for downgrade and their Baseline Credit Assessments (BCAs) cut from caa3 to ca.

“Today’s BCA downgrade is driven by 1) the significant deterioration in banks’ funding and liquidity in recent weeks, and 2) the current bank closures and associated capital controls, which constitute a deposit default in Moody’s opinion,” said the rating agency.

At the same time, Moody’s assigned Counterparty Risk (CR) assessments to the banks of Caa3, on review for downgrade.