Rating Action:
Moody's takes rating actions on Portuguese banks
16 Oct 2018
Rating actions follow the upgrade of Portugal's government bond rating to Baa3
Madrid, October 16, 2018 -- Moody's Investors Service has today taken rating actions on six Portuguese banking groups. The rating actions were prompted by the rating agency's upgrade of Portugal's government bond rating to Baa3 from Ba1 with a stable outlook. For further information on the sovereign rating action, please refer to Moody's press release dated 12 October 2018 (
Moody's upgrades Portugal's rating to Baa3, changes outlook to stable).
Consequently, Moody's changed Portugal's Macro Profile to "Moderate" from "Moderate-", driven by the improvement in Portuguese banks' operating environment, in particular the country's economic strength. The strengthening of the Macro Profile has led Moody's to review all of its rated Portuguese banks' financial factors and standalone credit profiles, thereby also taking into account continued progress in several banks' performance and financial fundamentals which is reflected in today's ratings actions.
For a detailed analysis of Portugal's Macro Profile please see: "Portugal Macro Profile: Moderate" (
Log In - Moody's).
Among the actions taken today by Moody's on the affected banks are the following:
- Upgrade of Caixa Geral de Depositos, S.A.'s (CGD) long-term deposit and senior unsecured debt ratings to Ba1 from Ba3 with a stable outlook. CGD's Baseline Credit Assessment (BCA) and adjusted BCA were upgraded to ba2 from b1.
- Upgrade of Banco Comercial Portugues, S.A.'s (BCP) long-term deposit ratings to Ba3 from B1 with a positive outlook and of its senior unsecured programme ratings to (P)Ba3 from (P)B1. BCP's BCA and adjusted BCA were upgraded to b1 from b2.
- Upgrade of Banco Santander Totta S.A.'s (BST) long-term deposit ratings to Baa2 from Baa3 and of its long-term senior unsecured debt ratings to Baa3 from Ba1, both with a stable outlook. BST's BCA was upgraded to ba2 from ba3 and its adjusted BCA to baa3 from ba1.
- Upgrade of Banco BPI S.A.'s (BPI) long-term deposit ratings to Baa1 from Baa3 with a change of outlook to stable from positive and of its senior unsecured programme ratings to (P)Baa2 from (P)Ba1. BPI's BCA was upgraded to ba1 from ba3 and its adjusted BCA to baa3 from ba2.
- Affirmation of Caixa Economica Montepio Geral, Caixa Economica Bancaria, S.A.'s (CEMG) long-term deposit ratings at B3 with a change of outlook to positive from developing and of its senior unsecured programme ratings at (P)B3. CEMG's BCA and adjusted BCA were affirmed at caa1.
-
Placing on review for upgrade of Novo Banco, S.A.'s (Novo Banco) Caa1 long-term deposit ratings and of its Caa2 long-term senior unsecured debt ratings. The outlook on these ratings was changed to rating under review from developing and positive respectively. The bank's caa2 BCA and adjusted BCA were also placed on review for upgrade.
