Moody’s might downgrade Banco BPI

Moody's Investors Service said it placed the following ratings of Banco BPI SA and its supported entities on review for downgrade: (a) The Ba3 long-term senior debt and deposit ratings; (b) the B2 subordinated debt ratings; (c) the provisional B3 junior subordinated program ratings; (d) the backed Caa1 (hyb) preference shares; (e) the bank's baseline credit assessment (BCA) and adjusted BCA of b1; and (f) its long-term counterparty risk assessment of Ba2(cr).

The review for downgrade was triggered by increased downside risks to BPI's credit profile, stemming from: (a) the lack of visible advances in solving the bank's breach of the regulatory large exposure limits, in relation to its exposure to Angola (Ba2 review for downgrade), before the European Central Bank's (ECB) imposed deadline of April 10; and (b) heightened risks associated with its Angolan exposures, as reflected by Moody's decision to place on review for downgrade Angola's sovereign rating on March 4.

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