Limassol, November 19, 2012 -- Moody's Investors Service has today placed on review for downgrade the senior unsecured debt and long-term deposit ratings of the following Cypriot banks:

-Cyprus Popular Bank Public Co Ltd: Senior unsecured debt and long-term deposit ratings of Caa1

-Bank of Cyprus Public Company Limited: Senior unsecured debt and long-term deposit ratings of Caa1

-Hellenic Bank Public Company Ltd: Long-term deposit ratings of B3

The review of the banks' debt and deposit ratings, which currently incorporate rating uplift from Moody's assumption of the likelihood of recapitalization from the Troika (European Commission, European Central Bank and the International Monetary Fund) via the Cypriot government, is driven by Moody's review of Cyprus's government bond ratings, initiated on 16 November 2012. Amongst other factors, the review of the government bond ratings reflects the delay and uncertainty surrounding the Cypriot authorities negotiations with the Troika to secure a support programme, which would finance bank capitalisations.

A full list of the affected issuers' ratings can be found at the end of this press release.

RATINGS RATIONALE

In Moody's view, the Cypriot banks face large capital needs and will require substantial state capital support. The banks' long-term debt and deposit ratings currently incorporate two notches of rating uplift, based on Moody's assessment of a high likelihood of support. The rating agency expects that the support will be forthcoming from external parties in the context of Cyprus'sEuropean Union membership.

The bank review is driven by the delay and uncertainty surrounding when the Cypriot authorities will be able to secure a support programme with the Troika that would pave the way for bank capitalisations. The uncertainty casts doubt on whether Moody's will be able to maintain its assumption of a high likelihood of support, which, in turn, could lead to a reduction in the current two notches of external-support uplift that the rating agency incorporates into the ratings.

FOCUS OF THE REVIEW

The bank review will closely track the government rating review and will focus on the progress that the Cypriot authorities make in securing a support programme with the Troika.

WHAT COULD MOVE THE RATINGS DOWN/UP

The review reflects the risk that the delivery of external support could be delayed or insufficient to stabilise the banks' credit profiles. Asset-quality pressures beyond Moody's central scenario -- given the challenging operating environment, or an increase in the probability of Greece exiting the euro area -- would also exert downwards pressure on the ratings.

As indicated by the review, there is little scope for upwards rating pressure. Upwards pressure could develop over time, following (1) the restructuring and removal of non-performing assets from the banks' balance sheets; and (2) significant strengthening of the banks' capital buffers that would be sufficient to absorb future asset-quality deterioration and withstand a potential Greek exit from the euro area.

LIST OF RATINGS

Bank of Cyprus Public Co Ltd:

- Deposit and senior unsecured debt ratings: Caa1 on review for downgrade

-Short term deposit and commercial paper ratings: Not Prime unaffected

- Subordinated debt rating: (P)C unaffected

- Junior subordinated notes rating: (P)C unaffected

- Standalone bank financial strength rating (BFSR): E mapping to caa3 unaffected

The BFSR, subordinated and junior subordinated debt ratings do not have an outlook assigned.

Cyprus Popular Bank Public Co Ltd:

- Deposit and senior unsecured debt ratings: Caa1 on review for downgrade

-Short term deposit ratings: Not Prime unaffected

- Subordinated debt rating: C unaffected

- Standalone bank financial strength rating (BFSR): E mapping to caa3 unaffected

The BFSR and subordinated debt ratings do not have an outlook assigned.

Egnatia Finance plc (the funding subsidiary of Cyprus Popular Bank):

- Senior unsecured debt rating: (P)Caa1 on review for downgrade

- Subordinated debt rating: (P)C unaffected

The subordinated debt ratings do not have an outlook.

Hellenic Bank Public Co Ltd:

- Deposit ratings: B3 on review for downgrade

- Short term deposit and commercial paper ratings: Not Prime unaffected

- Standalone bank financial strength rating (BFSR): E mapping to caa2 unaffected

The BFSR does not have an outlook assigned.

PRINCIPAL METHODOLOGIES

The principal methodology used in these ratings were Moody's Consolidated Global Bank Rating Methodology published in June 2012. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

The ratings have been disclosed to the rated entities or their designated agent(s) and issued with no amendment resulting from that disclosure.

Information sources used to prepare each of the ratings are the following: public information and confidential and proprietary Moody's Investors Service information.

Moody's considers the quality of information available on the rated entities, obligations or credits satisfactory for the purposes of issuing these reviews.

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Moody's Investors Service may have provided Ancillary or Other Permissible Service(s) to the rated entities or their related third parties within the two years preceding the credit rating action. Please see the special report "Ancillary or other permissible services provided to entities rated by MIS's EU credit rating agencies" on the ratings disclosure page on our website www.moodys.com for further information.

Please see the ratings disclosure page on www.moodys.com for general disclosure on potential conflicts of interests.

Please see the ratings disclosure page on www.moodys.com for information on (A) MCO's major shareholders (above 5%) and for (B) further information regarding certain affiliations that may exist between directors of MCO and rated entities as well as (C) the names of entities that hold ratings from MIS that have also publicly reported to the SEC an ownership interest in MCO of more than 5%. A member of the board of directors of this rated entity may also be a member of the board of directors of a shareholder of Moody's Corporation; however, Moody's has not independently verified this matter.

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Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Melina Skouridou Analyst Financial Institutions Group Moody'sInvestors Service Cyprus Ltd.Kanika Business Centre319 28th October Avenue PO Box 53205 Limassol CY 3301 Cyprus JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Yves J Lemay MD - Banking Financial Institutions Group JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Releasing Office: Moody's Investors Service Cyprus Ltd.Kanika Business Centre319 28th October Avenue PO Box 53205 Limassol CY 3301 Cyprus JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 (C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

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