| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers B > Headlines for Banca Popolare di Milano > News item |
Moody’s might raise Banco Popolare
Moody's Investors Service said it placed on review for upgrade the following ratings of Banco Popolare Societa Cooperativa SCRL (Banco) and its supported entities: (a) Ba2 long-term deposit ratings; (b) Ba3 long-term senior debt ratings; (c) B3 subordinated debt ratings; (d) Caa2(hyb) preference shares; (e) the bank's baseline credit assessment (BCA) and adjusted BCA of b2; and (f) its long-term counterparty risk assessment (CRA) of Ba2(cr).
At the same time, the agency placed on review for upgrade the following ratings of Banca Popolare di Milano SCarl (BPM) and its supported entities: (a) Ba2 long-term deposit ratings; (b) Ba3 long-term senior debt ratings; (c) B3 subordinated debt ratings; (d) Caa2(hyb) preference shares; (e) the bank's BCA and adjusted BCA of b2; and (f) its long-term CRA of Ba2(cr).
This action follows Banco and BPM’s March 23 announcement that their respective boards of directors reached an agreement to merge the two groups by year-end 2016.
The review for upgrade reflects Moody's view that the combined group is likely to display stronger credit fundamentals relative to those currently displayed by Banco and BPM individually, based on: (a) improved coverage of problem loans, thanks to a €1 billion capital increase, which will be fully used to increase provisions against problem loans; (b) long-term benefits of cost synergies and rationalization as well as expectations of better revenue diversification; and (c) improvements in corporate governance (a key rating constraint for BPM) as the new group will be joint-stock company.
Banco and BPM's short-term senior debt and deposit ratings at Not-Prime and their short-term CRA of Not-Prime(cr) were affirmed as part of this action.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.