Top Greek banks have credit ratings reduced

The four largest bank lenders in Greece have had their credit ratings cut by a leading industry body.

Fitch Ratings has downgraded financial institutions including the National Bank of Greece and Alpha Bank.

EFG Eurobank and Piraeus Bank were also affected.

Fitch Ratings stated that its decision was based on the country's ongoing economic crisis, which the organisation said will hurt the banks' asset quality.

"The required fiscal tightening that needs to be made by the Greek government will have a significant effect on the real economy, affecting loan demand and putting additional pressure on asset quality," it was stated.

Greece suffered a budget shortfall of 12.7 per cent in 2009 and the government has said it wants to cut that figure to 8.7 per cent this year.

Earlier this month, a summit meeting of European Union leaders in Brussels discussed the possibility of providing Greece with bailout funding, but no firm agreement has yet been implemented.