S&P Maalot cuts Tier 2 capital rtgs for Leumi, Mizrahi

JERUSALEM, April 5 (Reuters) - Standard & Poor's Maalot said on Sunday it lowered its ratings on upper Tier 2 capital for two of Israel's largest banks as the global financial crisis has increased credit risks.

S&P Maalot, the Israeli unit of S&P, downgraded the upper Tier 2 capital rating for Leumi (LUMI.TA), Israel's largest bank, and Mizrahi Tefahot (MZTF.TA), the country's fourth largest lender, to "A+" from "AA-".

S&P Maalot removed Bank Hapoalim (POLI.TA), Israel's second largest bank, from its Credit Watch Negative list. It had lowered its rating for hybrid Tier 1 capital of Hapoalim (POLI.TA) to "A" and its upper Tier 2 capital to "A+" in March.

Last week, Israel's top banks reported poor quarterly results. Mizrahi was the lone bank to have posted a profit in the fourth quarter. (Reporting by Steven Scheer; editing by Mike Nesbit)