Actions conclude review initiated on 15 February 2012
Madrid, March 28, 2012 — Moody’s Investors Service has today taken rating actions on seven Portuguese banks and banking groups. The senior debt and deposit ratings for four banks were downgraded by one notch, aligning their ratings at the same level or one notch below the ratings of the Portuguese government, which was downgraded to Ba3 from Ba2 on 13 February 2012. The debt and deposit ratings of Banco Santander Totta (a subsidiary of Banco Santander S.A.) were lowered by two notches to Ba1. The debt and deposit ratings of Banco Comercial Portugues (BCP) and of Caixa Economica Montepio Geral (Montepio) were confirmed at Ba3. All ratings have a negative outlook.
The downgrades of most of the banks’ debt and deposit ratings reflect Moody’s downgrades of their standalone bank financial strength ratings (BFSRs), which are driven by the following key factors:
– Expected further deterioration of banks’ domestic asset quality and profitability given the country’s poor economic outlook which is driven in part by the austerity measures needed to address the sovereign’s weakening credit profile
– Additional asset risks stemming from banks’ substantial holdings of government-related debt
– Prolonged and ongoing lack of access to private wholesale funding sources;
Read more: http://www.creditwritedowns.com/2012/03/full-text-moodys-takes-actions-on-seven-portuguese-banks-outlook-negative.html
Madrid, March 28, 2012 — Moody’s Investors Service has today taken rating actions on seven Portuguese banks and banking groups. The senior debt and deposit ratings for four banks were downgraded by one notch, aligning their ratings at the same level or one notch below the ratings of the Portuguese government, which was downgraded to Ba3 from Ba2 on 13 February 2012. The debt and deposit ratings of Banco Santander Totta (a subsidiary of Banco Santander S.A.) were lowered by two notches to Ba1. The debt and deposit ratings of Banco Comercial Portugues (BCP) and of Caixa Economica Montepio Geral (Montepio) were confirmed at Ba3. All ratings have a negative outlook.
The downgrades of most of the banks’ debt and deposit ratings reflect Moody’s downgrades of their standalone bank financial strength ratings (BFSRs), which are driven by the following key factors:
– Expected further deterioration of banks’ domestic asset quality and profitability given the country’s poor economic outlook which is driven in part by the austerity measures needed to address the sovereign’s weakening credit profile
– Additional asset risks stemming from banks’ substantial holdings of government-related debt
– Prolonged and ongoing lack of access to private wholesale funding sources;
Read more: http://www.creditwritedowns.com/2012/03/full-text-moodys-takes-actions-on-seven-portuguese-banks-outlook-negative.html
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