Fitch cuts Banco Popolare

Fitch Ratings said it downgraded Banco Popolare's and Banca Popolare di Milano's (BPM) long-term issuer default ratings to BB- from BB and BB+, respectively.

The outlook on Popolare's long-term issuer default rating is now stable. The agency removed BPM's long-term issuer default rating from Rating Watch Negative (RWN) and also assigned it a stable outlook.

Fitch said the downgrades anticipate the imminent merger of the two banks into a new company, Banco BPM SpA, and hence reflect the agency’s assessment of the risk profile of the post-merger consolidated group. The new group will be Italy's third largest banking group from Jan. 1.

© 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.