Moody's cuts Intesa BCA, debt

Moody's Investors Service said it affirmed Intesa Sanpaolo's Baa2 long-term debt and deposit ratings and Prime-2 short-term ratings.

At the same time, Moody's lowered Intesa's baseline credit assessment to baa3 from baa2, which prompted the downgrade of the bank's subordinated debt rating to Ba1 from Baa3.

The affirmation of the senior debt and deposit ratings reflects Moody's incorporation of one notch of systemic support into the Baa2 long-term ratings from the standalone baseline credit assessment of baa3, the agency said.

However, Moody's added that the lowering of the baseline credit assessment reflects Intesa's deteriorating asset quality and weak profitability, affected by the ongoing recession in Italy where the bank is concentrated and where it is expected to remain under pressure throughout 2013 and into 2014.

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