TEXT-S&P summary: Eurobank Ergasias S.A

Fri Nov 30, 2012 5:46am EST

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(The following statement was released by the rating agency)

Nov 30 -

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Summary analysis -- Eurobank Ergasias S.A ------------------------- 30-Nov-2012

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CREDIT RATING: CCC/Negative/C Country: Greece

Primary SIC: Commercial banks,

nec

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Credit Rating History:

Local currency Foreign currency

15-Jun-2011 CCC/C CCC/C

11-May-2011 B/C B/C

31-Mar-2011 B+/B B+/B

27-Apr-2010 BB/B BB/B

17-Dec-2009 BBB/A-2 BBB/A-2

04-May-2009 BBB+/A-2 BBB+/A-2

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Ratings Score Snapshot

Issuer Credit Rating CCC/Negative/C

SACP cc

Anchor b

Business Position Adequate (0)

Capital and Earnings Weak (-2)

Risk Position Weak (-2)

Funding and Liquidity Average

and Very Weak (-5)

Support +2

GRE Support 0

Group Support 0

Sovereign Support +2

Additional Factors 0

Major Rating Factors

Strengths:

-- Sound and stable market share in most retail and corporate lending segments in Greece.

-- Good geographic diversification.

Weaknesses:

-- High exposure to Greece's deteriorated economy.

-- Sizable funding imbalances and highly deteriorated liquidity.

-- Higher credit risk profile than international peers.

Outlook

Standard & Poor's Ratings Services' negative outlook on Eurobank Ergasias S.A is based on the possibility that we might lower the ratings if we believed it would default on its obligations, as defined by our criteria. We might lower the ratings on Eurobank if its access to the EU's extraordinary liquidity support mechanisms, including the Emergency Lending Assistance discount facility at the European Central Bank (unsolicited AAA/Stable/A-1+), became impaired for any reason. This support currently underpins the bank's capacity to meet its financing requirements. In this context, we also note that persistently high pressure on Greek banks' retail funding bases may lead to further deposit outflows, which could, in our opinion, increase Eurobank's need for additional extraordinary liquidity support from the EU authorities.

We might also lower the ratings if we believed the bank was likely to default as a result of any developments associated with a substantial impairment of its solvency. This could happen if, for any reason, Eurobank was unable to access external capital support, or if we considered such support insufficient to allow the bank to continue meeting regulatory capital requirements, mainly as a result of potential recognition of continued large impairments on loans.

Related Criteria And Research

All articles listed below are available on RatingsDirect on the Global Credit Portal, unless otherwise stated.

-- Criteria For Assigning 'CCC+', 'CCC', 'CCC-', And 'CC' Ratings, Oct. 1, 2012

-- Banks: Rating Methodology And Assumptions, Nov. 9, 2011

-- Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011

-- Group Rating Methodology And Assumptions, Nov. 9, 2011

-- Bank Hybrid Capital Methodology And Assumptions, Nov. 1, 2011

-- Bank Capital Methodology And Assumptions, Dec. 6, 2010

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