Morningstar DBRS Upgrades Eurobank S.A.'s Deposit Credit Ratings to BBB/R-2 (high) From BBB (low)/R-2 (middle), Following Sovereign Credit Rating Action; Changes Trend on the Deposit Credit Ratings to Stable From Positive

DBRS Ratings GmbH (Morningstar DBRS) upgraded Eurobank S.A.'s (the Bank) Long-Term Deposits credit rating to BBB from BBB (low), and the Bank's Short-Term Deposits credit rating to R-2 (high) from R-2 (middle). At the same time, Morningstar DBRS changed the trends on the Bank's Long-Term Deposits and Short-Term Deposits to Stable from Positive. The Bank's Issuer Ratings and Intrinsic Assessment (IA) are unaffected by this credit rating action. A full list of credit rating actions is included at the end of this press release.

KEY CREDIT RATING CONSIDERATIONS
The Bank is the main operating entity of the Eurobank Holdings Group (Eurobank), one of the four systemic banking groups in Greece.

The upgrade and trend change follow Morningstar DBRS' credit rating action on the Hellenic Republic. On 7 March 2025, Morningstar DBRS upgraded the Hellenic Republic's Issuer Ratings to BBB/R-2 (high) from BBB (low)/R-2 (middle) and changed the trend to Stable from Positive. For more details on the rationale for the sovereign credit rating action, please refer to the press release titled "Morningstar DBRS Upgrades the Hellenic Republic to BBB, Trend Changed to Stable" at https://dbrs.morningstar.com/research/449542.

Morningstar DBRS rates deposits in Greece one notch above the Bank's IA, up to the same credit rating level as the Hellenic Republic's sovereign credit rating. This reflects the legal framework in place in Greece, which has full depositor preference in bank insolvency and resolution proceedings. As a result, the Bank's Long-Term Deposits are rated BBB with a Stable trend, in line with the sovereign credit rating.

CREDIT RATING DRIVERS
The Long-Term and Short-Term Deposit credit ratings of the Bank will generally be affected by changes in the Bank's IA. However, an upgrade would also require an upgrade of the Hellenic Republic's sovereign credit rating. A downgrade would result from a downgrade of the Hellenic Republic's sovereign credit rating.

In addition, the deposit credit ratings could also be affected by any further changes in the legal framework for bank resolution and/or creditor hierarchy.

An upgrade of the IA would require Eurobank to maintain its improved underlying profitability and asset quality on a sustained basis while preserving adequate capital buffers. An improvement in Eurobank's funding diversification and its quality of capital could also contribute to an upgrade.

A downgrade of the IA would result from a material deterioration in Eurobank's asset quality and its underlying profitability.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
Credit rating actions on the Hellenic Republic are likely to have an impact on this credit rating. ESG factors that have a significant or relevant effect on the credit analysis of the Hellenic Republic are discussed separately at https://dbrs.morningstar.com/issuers/17484.

There were no Environmental factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (13 August 2024) https://dbrs.morningstar.com/research/437781.

Notes:
All figures are in euros unless otherwise noted.

The principal methodology is the Global Methodology for Rating Banks and Banking Organisations (4 June 2024) https://dbrs.morningstar.com/research/433881. In addition, Morningstar DBRS uses the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings https://dbrs.morningstar.com/research/437781 in its consideration of ESG factors.

The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies

The sources of information used for this credit rating include Morningstar, Inc. and company documents, Eurobank F2024 Results Press Release, and Eurobank F2024 Results Presentation. Morningstar DBRS considers the information available to it for the purposes of providing this credit rating to be of satisfactory quality.

Morningstar DBRS does not audit the information it receives in connection with the credit rating process, and it does not and cannot independently verify that information in every instance.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS' trends and credit ratings are under regular surveillance.

For further information on Morningstar DBRS historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: https://registers.esma.europa.eu/cerep-publication. For further information on Morningstar DBRS historical default rates published by the Financial Conduct Authority (FCA) in a central repository, see https://data.fca.org.uk/#/ceres/craStats.

The sensitivity analysis of the relevant key credit rating assumptions can be found at: https://www.dbrsmorningstar.com/research/449817.

This credit rating is endorsed by DBRS Ratings Limited for use in the United Kingdom.

Lead Analyst: Andrea Costanzo, Vice President - European Financial Institution Ratings
Rating Committee Chair: Nicola De Caro, Senior Vice President, Sector Lead - European Financial Institution Ratings
Initial Rating Date: 10 July 2024
Last Rating Date: 13 September 2024

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