Cyprus: Hellenic’s Loan Package Sale “a Credit Positive” Moody’s Says

Cyprus: Hellenic’s Loan Package Sale “a Credit Positive” Moody’s Says

Moody’s Investors Service gave Hellenic Bank a positive deposits rating of Caa1 and a caa2 baseline credit assessment. Which even though  small, the credit positive preliminary agreement to sell €145m of non-performing, non-retail secured and unsecured loans to Norway’s B2Holdings ASA allowed the Bank to reduce its nonperforming exposures (NPE) by 6.2% as in September 2017.

Arguably, the change in legislation that allows banks to organise their problematic exposure and also the expecting reduction in non-performing loans portfolio in banks allows for positive thoughts in respect of banks providing lending to the economy which is further expected to grow 3.2% in 2018.