Fitch downgrades Eurofidi

Fitch Ratings said it downgraded Eurofidi's long-term issuer default rating to BB+ from BBB- and short-term issuer default rating to B from F3.

The long-term issuer default rating also was placed on Rating Watch negative.

The downgrade reflects a view that support for Eurofidi from its largest ultimate shareholder, the region of Piemonte, has weakened, Fitch said.

The agency said it believes that recent changes in Eurofidi's statutes, driven by European directives, are an indicator of loosening ties between Piemonte and Eurofidi.

In recent years, Eurofidi has significantly diversified its activities outside its home region of Piemonte with about 70% of guarantees issued across nine regions outside Piemonte at end-2011.

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