S&P Global Ratings upgraded Alpha Bank by one notch, to BB+ from BB, with a stable outlook, with the successful issuance of the AT1 bond playing a decisive role in the bank’s decision. The new assessment of the Bank by S&P puts Alpha Bank on the same level as National Bank and Eurobank.

As the house’s analysts point out, the recent issuance of AT1 bond strengthened the capital adequacy, which was already in a positive trend thanks to the improved operational performance of the Bank.

“Over the past five years, operational recovery and a supportive macroeconomic environment have strengthened Alpha Bank’s capital. Net interest margins have improved significantly, thanks to monetary tightening, while NPEs charges have leveled off following securitizations,” it also said. S&P in its report and concludes: “The outlook for Alpha Bank is stable, reflecting our expectation that the bank will show solid operating performance and its capitalization will improve over the next 12 months, despite the bank’s plans to increase its dividend distribution “.

Fitch Ratings also raised Alpha Bank one notch higher today, upgrading it to BB from BB-, with a positive outlook. In its relevant report, the bank points out that the decisive factor for the upgrade was, in addition to the positive macroeconomic environment in Greece, the continuous improvement of Alpha Bank’s credit profile, which includes the further reduction of Non-Performing Exposures (NPEs) as well as the enhanced profitability and capital adequacy, as shown by the financial results of the 1st half of 2024. Fitch analysts expect a further reduction in non-performing exposures (NPEs), both organically and through new securitizations, while confirming that in the medium term the Bank’s profitability will not be affected substantially from the expected interest rate cuts by the ECB.