DBRS Ratings (Morningstar DBRS) has upgraded the credit ratings of Greek banks Eurobank S.A. and the National Bank of Greece from BBB (low) to BBB.

At the same time, the Canadian agency revised the outlook for Eurobank S.A. to positive, while maintaining a stable outlook for the National Bank of Greece.

Regarding Eurobank, DBRS stated that the rating upgrade reflects the bank’s strengthened ability to sustain improved profitability and maintain a high-quality asset profile, while preserving solid capital buffers—even following its acquisition of Hellenic Bank (HB) in Cyprus.

According to Morningstar DBRS, Eurobank’s profitability is expected to remain at adequate levels in the near term, as the negative effects of lower interest rates and rising operating costs are likely to be offset by loan growth, enhanced revenue diversification, cost optimization, and synergies from the integration of Hellenic Bank.

For the National Bank of Greece, DBRS noted that the rating upgrade and stable outlook reflect the bank’s consistently improved profitability and further strengthening of its asset quality profile.

It also highlighted that the bank maintains substantial capital reserves above regulatory requirements.

Morningstar DBRS expects the National Bank’s profitability to decline, mainly due to lower interest rates and increased operating expenses. However, it added that new loan issuance, higher fee income, and ongoing cost-efficiency measures are expected to mitigate the negative impact.