Fitch ups Banco BPI viability

Fitch Ratings said it affirmed Banco BPI SA's long-term issuer default rating at BBB- with a positive outlook and upgraded the viability rating to bb+ from bb.

The rating actions are part of a periodic portfolio review of Portuguese banks rated by Fitch and follow the upgrade of Portugal's sovereign rating.

Fitch said the upgrade of the viability rating reflects the strengthening of Banco BPI's regulatory capital ratios and the progress made in the implementation of the bank's cost restructuring plan.

The viability rating also takes into account Banco BPI's stronger asset quality and funding profile than most domestic peers but still modest earnings generation, the agency explained. The viability rating also factors in the bank's adequate retail franchise in a small economy such as Portugal.

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