The international credit rating firms seem to be positive to the three-way merger of Marfin Financial Group, Laiki Group and Egnatia Bank. In a report released on Monday, Moody’s affirmed Cyprus Popular Bank's (CPB) Baa1/Prime-2 ratings for foreign currency deposits, Baa1 for senior unsecured debt, Baa2 for subordinated debt and D+ financial strength rating (FSR).
Moody’s also “has placed on review for possible upgrade the Baa3/Prime-3 foreign currency deposit ratings of Egnatia Bank SA (Greece)”.
According to the analysts, “the bid comes as a natural progression of the ownership changes at the three banks that took place since early this year, which resulted in MFG controlling 46% and 13% in EB and CPB, respectively. Based on June 2006 figures, the combined financial group -- to be named Marfin Popular Bank -- is expected to have total assets of €20.8 billion, a branch network of 300 units and major operations in Cyprus and Greece, as well as some presence other countries”.
Moody’s also “has placed on review for possible upgrade the Baa3/Prime-3 foreign currency deposit ratings of Egnatia Bank SA (Greece)”.
According to the analysts, “the bid comes as a natural progression of the ownership changes at the three banks that took place since early this year, which resulted in MFG controlling 46% and 13% in EB and CPB, respectively. Based on June 2006 figures, the combined financial group -- to be named Marfin Popular Bank -- is expected to have total assets of €20.8 billion, a branch network of 300 units and major operations in Cyprus and Greece, as well as some presence other countries”.
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