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Emporiki Group Finance Plc — Moody’s assigns Caa1/NP deposit ratings to the new

Rating Action: Moody’s assigns Caa1/NP deposit ratings to the new legal entity Alpha Bank S.A. in Greece; positive outlookGlobal Credit Research – 19 Apr 2021The rating agency withdraws the BCA and deposit ratings assigned to the legacy entity, which became the holding company and will be renamed Alpha Services and Holdings S.A.Limassol, April 19, 2021 — Moody’s Investors Service (“Moody’s”) has today assigned a Baseline Credit Assessment (BCA) of caa1 and bank deposit ratings of Caa1/NP to Alpha Bank S.A. (Alpha Bank), the newly-formed legal entity that was granted a new banking license and has taken over the core banking operations from its legacy entity in Greece (Alpha Bank AE), which was renamed Alpha Services and Holdings S.A. At the same time, the rating agency has withdrawn the BCA of caa1 and all existing deposit ratings of Caa1/NP and other outstanding ratings, with the exception of the Caa2 subordinated ratings assigned to the Tier 2 instruments issued by its legacy entity. These subordinated notes will remain under Alpha Services and Holdings S.A., which now acts as the holding company of the group and is listed on the Athens stock exchange. Moody’s has also assigned a Caa2 long-term issuer rating to Alpha Services and Holdings S.A.The new ratings assigned to Alpha Bank S.A. are positioned at the same level as those previously assigned to the legacy entity. Moody’s says that this takes into consideration the successful implementation of the bank’s transformation plan but also the still significant downside risks stemming from the negative effects of the coronavirus on the Greek economy and the residual non-performing exposures (NPEs) left on its balance sheet.The positive outlook assigned to Alpha Bank S.A.’s long-term deposit ratings as well as to the holding company’s issuer rating, reflects the bank’s plans to further improve its asset quality in 2021-22, as well as the medium-term benefits generated by the transformation plan, mainly in profitability.The list of ratings affected by today’s rating action is at the end of this press release. RATINGS RATIONALE — Alpha Bank S.A. According to Moody’s, the decision to position Alpha Bank’s BCA at caa1, which is at the same level as the BCA of caa1 previously assigned to the legacy entity, despite the improvement in asset quality resulting from the transformation plan, is driven by the uncertainty surrounding the recovery of the Greek economy following the recession in 2020 due to the coronavirus. Such economic recovery, including the tourism sector that is one of the main pillars of the Greek economy, will largely depend on the roll-out pace of vaccination plans, the utilisation of the EU recovery funds as well as the willingness of foreign visitors to travel to the country in the second half of this year. Accordingly, there are still significant downside risks for all Greek banks, which could lead to delays in improving their underlying financial fundamentals, constraining for now…

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