Bulletin: National Bank Of Greece 'SD' Rating Unaffected By The Sale Of Finansbank

MILAN (Standard&Poor's) Dec. 22, 2015--Standard&Poor's Ratings Services said today that its selective default (SD) rating on the National Bank of Greece (NBG) is not immediately affected by the bank's announcement of the sale of its Turkish subsidiary Finansbank A.S. to Qatar National Bank S.A.Q. (QNB), for €2,750 million. The transaction close, which is expected by March 2016, is subject to regulatory approval from Turkish and Qatari authorities. The Finansbank sale was part of the remedial action plan set up by NBG to fulfill the capital shortfall of about €4.5 billion identified by the European Central Bank stress test in October 2015. This deal is likely to improve the bank's common equity tier 1 by about 600

...MILAN (Standard & Poor's) Dec. 22, 2015--Standard & Poor's Ratings Services said today that its selective default (##) rating on the National Bank of Greece (NBG) is not immediately affected by the bank's announcement of the sale of its Turkish subsidiary Finansbank A.S. to Qatar National Bank S.A.Q. (QNB), for 2,750 million. The transaction close, which is expected by March 2016, is subject to regulatory approval from Turkish and Qatari authorities. The Finansbank sale was part of the remedial action plan set up by NBG to fulfill the capital shortfall of about 4.5 billion identified by the European Central Bank stress test in October 2015. This deal is likely to improve the bank's common equity tier 1 by about 600 basis points (bps) to about 19.6% (without considering the impact of the Cocos). It will also facilitate the reimbursement of part of the state aid that the bank received to fulfil the capital shortfall that emerged from the stress test. We estimate that the sale will have positive...

Bulletin