S&P downgrades Greek banks, eyes default within a year
PARIS (AFP) - Standard & Poor's lowered the rating of Greece's biggest four banks on Friday, two days after cutting its already deep-junk rating for Greek bonds.
Alpha Bank, Eurobank, the National Bank of Greece and Piraeus Bank saw their rating drop from CCC+ to CCC, S&P said in a statement.
"The downgrade reflects our view that Greek banks will likely default within the next 12 months in the absence of an agreement between the Greek government and its official creditors while the end of the extension of the current program is approaching," the ratings agency said.
"In this context, we see increasing likelihood that capital controls will be imposed to staunch further deposit outflows."
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