Athens, Nov 20 (Reuters) - The planned recapitalisation of
Greece's four largest banks is not likely to provide a
significant cushion for potential further asset deterioration,
ratings agency Standard & Poor's said on Friday saying that.
In a report S&P said the capital being raised by the banks -
National NBGr.AT , Piraeus BOPr.AT , Eurobank EURBr.AT and
Alpha ACBr.AT - will only be enough to absorb the losses that
they are expected to post over the next 12 to 18 months.
The banks must plug a capital shortfall of 14.4 billion
euros uncovered by a European Central Bank review last month
under an adverse scenario. Based on the baseline scenario the
capital gap was 4.4 billion euros.
S&P estimated that the four banks will need between 2-4
billion in additional provisions on top of ECB's baseline
scenario to adequately cover non-performing assets.
As a result the agency is not expecting to raise its "D"
rating on those banks while current deposit access restrictions
remain in place.