National Bank of Greece becomes the first Greek bank to regain its investment grade rating, the bank said in a statement. 

According to NBG, "Morningstar DBRS has rated NBG's long-term credit rating at BBB (low), making us the first Greek bank to regain its Investment Grade, almost 15 years after the onset of the Greek financial crisis. NBG's rating is equivalent (pari-passu) to that of Greece's credit rating.

NBG's rating reflects our leading position in the Greek market, our strong balance sheet, high organic profitability, steady capital reserve generation, as well as the bank's strong financial position and liquidity." 

Morningstar DBRS in its analysis highlights the continued progress the bank has made in strengthening its balance sheet, reducing its stock of non-performing exposures (NPEs) and increasing NPE coverage levels.

In addition, Morningstar DBRS takes into account that National Bank's core earnings power has improved due to higher interest rate margins as well as cost savings and overall reduced credit costs. This has resulted in the bank accumulating organically stable capital levels and this translates into stronger buffers relative to regulatory requirements.

The credit ratings also incorporate the stable funding position of the bank.