Moody’s upgraded two Alpha Bank covered bond programmes – including its outstanding benchmark – and a Eurobank Ergasias programme to Ba2 yesterday (Tuesday), following upgrades of the Greek banks.

Moody’s upgraded the deposit and senior unsecured ratings of Alpha Bank and Eurobank from Caa3 to Caa2 yesterday, and, among other rating actions, raised the issuers’ counterparty risk (CR) assessments to B3.

The rating agency said the upgrades reflect the banks’ expanding deposits, Alpha Bank’s reduced reliance on emergency liquidity assistance (ELA), and Eurobank’s issuance of a EUR950m Tier 2 bond in January.

Following the rating actions on the CR assessments, Moody’s upgraded Alpha Bank’s two mortgage covered bond programmes – including the soft bullet programme from which it issued its first benchmark covered bond in January – by one notch from Ba3, and Eurobank’s Mortgage Covered Bonds 2 programme by two notches from B1.

The rating agency affirmed its Ba2 rating of Eurobank’s Mortgage Covered Bonds 1 programme – from which it issued its inaugural benchmark covered bond in October.

The ratings of the three programmes that were upgraded are constrained by their Timely Payment Indicators (TPIs) of “very improbable”. The rating of Eurobank’s Mortgage Covered Bonds 1 programme is constrained by the long term country ceilings for foreign currency and local currency bonds, which is Ba2.

All Moody’s-rated Greek covered bond programmes are now rated Ba2, with Moody’s having upgraded National Bank of Greece covered bonds from B3 to Ba2 in February.