Moody’s Investors Service on Thursday offered positive remarks over a planned merger between Alpha Bank and Eurobank, saying the merger will create the largest banking group in SE Europe with assets worth 150 billion euros and a branch network of 2,276 units in the region.
In a statement, the credit rating agency, said it will include the impact from the merger to its evaluation of the two banks in its next report.
Meanwhile, Alpha Bank analysts said a merger with Eurobank will add pressure for further corporate changes in the domestic banking sector. In a weekly bulletin, Alpha Bank, said a decision by Alpha Bank and Eurobank to merger, with the participation of foreign investment capital from Qatar, was a benchmark decision in determining financial developments in the country, as it was reached amid a climate of deep recession, fiscal crisis and a weak stock market. This move is restore confidence to the Greek economy, creating conditions for a return of savings to the domestic banking system and financing economic recovery, the bulletin stated.
The Moody report had a positive effect on the Athens Stock Exchange, pushing the composite index of the market sharply higher, after a steep two-day decline.