Fitch hikes Banco Montepio

Fitch Ratings said it upgraded Caixa Economica Montepio Geral, Caixa economica bancaria, SA's (Banco Montepio) long-term issuer default rating to BB from B+, senior non-preferred rating to BB- from B and subordinated notes to B+ from B-

“The upgrade primarily reflects Banco Montepio's sustainable and successful reduction of problem assets (impaired loans, net foreclosed assets and investment properties) and improved capitalization. Together this has resulted in a significant decline in the level of capital encumbered by problem assets.

The upgrade is also supported by the bank's improved structural profitability and recent evidence of its ability to issue unsecured debt on the wholesale markets,” the agency said in a press release.

The outlook is stable.

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