Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Você está prestes a deixar o site local do Brasil e será direcionado ao site global. Deseja continuar?
Não exibir esta mensagem novamente
Sim
Não
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:
​​

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's confirms Novo Banco's Caa2 senior debt ratings and extends the review for downgrade on the Caa1 deposit ratings

06 Oct 2017

Upgrades baseline credit assessment to caa2; outlook on senior debt ratings is positive

Madrid, October 06, 2017 -- Moody's Investors Service has today taken the following actions on Novo Banco, S.A.'s (Novo Banco) ratings and assessments: (1) upgraded the bank's baseline credit assessment (BCA) and adjusted BCA to caa2 from ca; (2) confirmed the bank's long-term senior unsecured debt ratings of Caa2; and (3) confirmed the long-term Counterparty Risk Assessment (CR Assessment) of B3(cr). Novo Banco's long-term deposit ratings of Caa1 remain on review for downgrade. The outlook on the long-term senior debt ratings changed to positive from Ratings under Review.

Today's rating action follows Novo Banco's announcement on 4 October 2017 of the outcome of the liability management exercise (LME) on its senior debt -- that despite being below the targeted minimum acceptance rate, the bank has fulfilled the target of raising capital in the amount of EUR500 million. The rating action also reflects the conclusion of the acquisition by the private equity firm Lone Star of 75% of Novo Banco's capital, which is still subject to formal authorization by the European Commission.

This rating action concludes the review for downgrade on Novo Banco's long-term senior debt ratings, which was initiated on 5 April 2017 (please see Moody's downgrades Novo Banco's senior debt rating to Caa2 and places it on review for further downgrade: https://www.moodys.com/research/--PR_364607).

The short-term deposit and programme ratings of Not Prime and short-term CR Assessment of Not Prime(cr) are unaffected by today's rating action.

A list of the affected ratings can be found at the end of this press release.

RATINGS RATIONALE

--RATIONALE FOR THE BCA

The upgrade of Novo Banco's BCA to caa2 from ca reflects Moody's view that the bank's standalone creditworthiness has improved following its recapitalization by close to EUR2 billion due to the LME and the acquisition by Lone Star. More important, the closing of the transaction ensures that Novo Banco will continue to operate as a going concern.

As a result of the LME, Novo Banco has purchased and redeemed senior bonds for an amount that represents 73% of total outstanding senior debt (EUR3 billion as of end-June 2017). This has resulted in a capital increase of EUR500 million in the form of upfront capital gains and interest savings over a period of five years.

Under the sale agreement, Novo Banco will also benefit from a capital injection by Lone Star of EUR1 billion, of which EUR750 million will be provided at the closing of the acquisition and the remaining EUR250 million over the next three years. Furthermore, as part of the acquisition, the Portuguese resolution fund (which will hold 25% of Novo Banco's capital) has agreed on a contingent capital mechanism that could lead to a capital injection of a maximum EUR3.9 billion under specific conditions and in the event that the bank fails to comply with minimum regulatory capital requirements.

Novo Banco's recapitalization will improve its capital position by more than 300 basis points at the closing of the transaction. The bank displayed a tangible common equity to risk-weighted assets ratio of 6.6% at end-June 2017. However, Novo Banco's improved capital position needs to be balanced against its very weak asset risk, with the non-performing asset (NPA) ratio estimated at a very high 39% and an NPA coverage ratio of 43% as of end-June 2017.

In Moody's view, significant challenges to the bank's risk profile remain, even after its sale to Lone Star, which reflect the high degree of uncertainty around Novo Banco's medium-term strategy.

--RATIONALE FOR SENIOR DEBT RATINGS

The confirmation of the bank's long-term senior debt ratings at Caa2 reflects: (1) the upgrade of the bank's BCA to caa2; (2) no uplift from Moody's Advanced Loss Given Failure (LGF) analysis, which is based on the rating agency's estimates of Novo Banco's liability structure after the completion of the LME that has triggered the redemption of 73% of the bank's outstanding senior debt; and (3) the assessment of a low probability of government support for Novo Banco that results in no further uplift for these ratings.

Novo Banco's Caa2 senior debt ratings now carry a positive outlook reflecting the potential benefit to the bank's BCA if the acquisition and recapitalization by Lone Star results in a further de-risking of its balance sheet and restructuring of its operations. In Moody's view, this will be key to ensuring the bank's sustained viability and future profitability.

--RATIONALE FOR THE DEPOSIT RATINGS

The extension of the review for downgrade on Novo Banco's Caa1 long-term deposit ratings reflects: (1) the upgrade of the bank's BCA to caa2; (2) the assessment of a low probability of government support for the bank that results in no further uplift for these ratings; and (3) the downside risks to Novo Banco's deposit ratings stemming from the lower loss absorption provided by the reduced volume of senior debt resulting from the LME.

This could result in a Preliminary Rating Assessment (PRA) of Caa2 for the deposits, in line with the BCA. However, as per the terms and conditions of the LME, a large portion of the bank's senior debt bonds that have been purchased and redeemed will remain in the bank in the form of deposits. Furthermore, Novo Banco's deposits could benefit from a potential improvement of the bank's standalone BCA.

Moody's expects to conclude the review process once it has full visibility on Novo Banco's liability structure following the closing of the LME and the acquisition by Lone Star. The rating agency will also assess the liability profile of the bank along with its near-term funding plan.

--RATIONALE FOR THE CR ASSESSMENT

As part of today's rating action, Moody's has also confirmed the long-term CR Assessment of Novo Banco at B3(cr), two notches above the adjusted BCA of caa2, reflecting the cushion provided by the volume of bail-in-able debt and deposits, which would likely support operating obligations in the event of a resolution.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The standalone BCA of Novo Banco could be upgraded once the rating agency has visibility on the bank's risk profile and strategy. The bank's BCA could also benefit if the bank achieves a material improvement to its key solvency metrics, namely by reducing the stock of NPAs and improving profitability.

Downward pressure could be exerted on Novo Banco's BCA if the bank's risk-absorption capacity deteriorates due to a deterioration of its asset risk or larger than anticipated losses; and/or (2) the bank's liquidity deteriorates from its current position.

In addition, any change to the BCA would also be likely to affect deposit and debt ratings, as they are linked to the standalone BCA.

Novo Banco's deposit ratings could also change as a result of changes to the loss-given-failure faced by these liabilities.

LIST OF AFFECTED RATINGS

Issuer: Novo Banco, S.A.

..Upgrades:

....Adjusted Baseline Credit Assessment, upgraded to caa2 from ca

....Baseline Credit Assessment, upgraded to caa2 from ca

..Confirmations:

....Long-term Counterparty Risk Assessment, confirmed at B3(cr)

....Senior Unsecured Regular Bond/Debenture, confirmed at Caa2, outlook changed to Positive from Rating under Review

..Extension of Review for downgrade:

....Long-term Bank Deposits, currently Caa1 Ratings under Review

Outlook: Ratings under Review

Issuer: NB Finance Ltd.

..Confirmations:

....Backed Senior Unsecured Regular Bond/Debenture, confirmed at Caa2, outlook changed to Positive from Rating under Review

..Outlook Action:

....Outlook changed to Positive from Ratings under Review

Issuer: Novo Banco S.A., London Branch

..Confirmation:

....Long-term Counterparty Risk Assessment, confirmed at B3(cr)

..Extension of Review for downgrade:

....Long-term Bank Deposits, currently Caa1 Ratings under Review

Outlook: Ratings under Review

Issuer: Novo Banco S.A., Luxembourg Branch

..Confirmations:

....Long-term Counterparty Risk Assessment, confirmed at B3(cr)

....Senior Unsecured Regular Bond/Debenture, confirmed at Caa2, outlook changed to Positive from Ratings under Review

..Extension of Review for downgrade:

....Long-term Bank Deposits, currently Caa1 Ratings under Review

Outlook: Ratings under Review

Issuer: Novo Banco, S.A., Cayman Branch

..Confirmation:

....Long-term Counterparty Risk Assessment, confirmed at B3(cr)

..Extension of Review for downgrade:

....Long-term Bank Deposits, currently Caa1 Ratings under Review

Outlook: Ratings under Review

Issuer: Novo Banco, S.A., Madeira Branch

..Confirmation:

....Long-term Counterparty Risk Assessment, confirmed at B3(cr)

..Extension of Review for downgrade:

....Long-term Bank Deposits, currently Caa1 Ratings under Review

Outlook: Ratings under Review

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in September 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Maria Jose Mori
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Carola Schuler
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Espana, S.A.
Calle Principe de Vergara, 131, 6 Planta
Madrid 28002
Spain
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH  CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND  OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND  PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES  ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR  PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.

MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.

To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.

Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​​​