Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
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
Accept our 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 information 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
09 Dec 2010
Senior debt and Financial Strength ratings of Banif and Caixa Economica Montepio Geral affirmed.
Madrid, December 09, 2010 -- Moody's Investors Service has today announced that it will review for
possible downgrade the standalone Bank Financial Strength Ratings as well
as the senior and junior debt ratings of the Portuguese banks listed below.
At the same time, Moody's affirmed the Baa3 senior debt ratings
and the Bank Financial Strength Ratings ("BFSR") of D and
D-, respectively, of Caixa Economica Montepio Geral
and Banif -- Banco Internacional do Funchal.
RATING RATIONALE
Moody's said that the review for possible downgrade of the Portuguese
banks' standalone BFSRs was triggered by a combination of (i) their
high reliance on central bank liquidity while the international wholesale
markets remain mostly shut to Portuguese banks; (ii) the Portuguese
government's planned austerity measures and the possible impact
these measures may have on both earnings and asset quality of the banks;
(iii) the higher level of uncertainty and reduced predictability of the
operating environment for the banks, which makes increased and protracted
government support of some of these banks more likely than previously
anticipated.
Accordingly, the review of the BFSRs will focus on the banks'
ability to access market funding and the cost of the ongoing central bank
liquidity support, and the banks' individual strategies to
reduce their reliance on these funding sources. At the same time,
the review will take into consideration the possible impact of the planned
austerity measures on banks' credit metrics against the background
of an uncertain growth trajectory for the Portuguese economy.
As indicated by the fact that the lower rated BFSRs of both Montepio and
Banif have been affirmed, we would not expect to lower the standalone
ratings of any of the banks below the D category (mapping to the Baa3
to Ba3 range). We believe that this level, which implies
modest intrinsic financial strength potentially requiring some outside
support at times, already incorporates the liquidity and asset performance
levels that triggered today's rating actions on the remaining banks.
Other things being equal, rating downgrades of the banks'
standalone financial strength would place downward pressure on the banks'
senior debt ratings, which have therefore also been placed on review
for possible downgrade. Moody's expects that ongoing support
by the Portuguese government is likely to mitigate some of the pressure
on senior debt ratings, which should ensure that the banks retain
a credit profile that is still commensurate with investment grade ratings.
It is for this reason that the Baa3 long-term senior ratings of
Banif and Montepio have not been placed on review. Moody's
has a negative outlook on these two banks to reflect the uncertainty in
their operating environment and the significant market pressure that the
Portuguese banking system continues to face.
The review of BPN's Baa3 debt rating for downgrade reflects the
fact that the government was unsuccessful in its second attempt to privatise
the bank which has increased, in Moody's view, the probability
of a liquidation scenario for BPN. The review will look at the
next steps the government will take to solve the future of BPN.
Over the course of the review period, Moody's will also assess
the extent to which systemic support continues to remain applicable to
more junior capital instruments of Portuguese banks. We note a
developing pattern of policy initiatives across Europe that either has
imposed selective losses on subordinated debt, most recently in
the case of Ireland, or proposes to enable regulators the ability
to do so more prospectively going forward. Accordingly, Moody's
is reviewing for downgrade the subordinated debt ratings of Banif and
Montepio, while their senior ratings and BFSRs have been affirmed.
In Moody's opinion, should the government be forced to support
banks by injecting additional capital, it might well follow the
precedent currently being established elsewhere and look to offset this
in part through burden-sharing with junior creditor classes.
The following ratings have been placed under review for possible downgrade:
- Caixa Geral de Depositos ("CGD"): on review
are BFSR of D+ (mapping to Baa3), A1/P-1 ratings for
senior debt and deposit, A2 for subordinated debt, Baa2 for
junior subordinated debt and Ba1 for Tier 1 securities.
- Banco Santander Totta ("BST"): on review are
BFSR of C (mapping to A3), A1/P-1 ratings for senior debt
and deposit, A2 for subordinated debt and A3 for junior subordinated
debt; the ratings continue to incorporate unchanged high support
assumptions from its parent, Banco Santander S.A.
(Aa2/P-1/B-), which is not subject to the review.
- Banco Espirito Santo ("BES"): on review are
BFSR of C- (mapping to Baa2), A2/P-1 ratings for senior
debt and deposit, A3 for subordinated debt, Baa3 for junior
subordinated debt and Ba2 for Tier 1 securities.
- Banco BPI ("BPI"): on review are BFSR of C-
(mapping to Baa2), A2/P-1 ratings for senior debt and deposit,
A3 for subordinated debt, Baa3 for junior subordinated debt ratings
and Ba2 for Tier 1 securities rating.
- Espirito Santo Financial Group ("ESFG"): on
review are Baa1/P-2 issuer rating, Baa2 ratings for subordinated
debt and Ba3 for preferred securities.
- Banco Comercial Portugues ("BCP"): on review
are BFSR of D+ (mapping to Baa3), A3/P-2 ratings for
senior debt and deposit, Baa1 for subordinated debt ratings and
Ba3 for Tier 1 securities rating.
- Caixa Economica Montepio Geral ("Montepio"):
on review are the Ba1 ratings for subordinated debt and the Ba3 for junior
subordinated debt. The BFSR of D (mapping to Ba2) and the Baa3/P-3
debt and deposit ratings were affirmed with a negative outlook.
- Banif-Banco Internacional do Funchal ("BANIF"):
on review are the Ba1 ratings for subordinated debt and the B1 for junior
subordinated debt. The BFSR of D- (mapping to Ba3),
the Baa3/P-3 debt and deposit ratings and the B3 for Tier 1 securities
were affirmed with a negative outlook.
- Banco Itau Europa ("BIE"): on review are BFSR
of C- (mapping to Baa2), Baa1/P-2 ratings for senior
debt and deposit, Baa2 for subordinated debt and Baa3 for junior
subordinated debt.
- Banco Portugues de Negocios ("BPN"): on review
are Baa3/P-3 ratings for deposit ratings. The BFSR of E
(mapping to Caa1) was affirmed with a developing outlook.
The principal methodologies used in rating these issuers are "Bank Financial
Strength Ratings: Global Methodology" published in February 2007,
"Incorporation of Joint-Default Analysis into Moody's Bank Ratings:
A Refined Methodology" published in March 2007, and "Moody's Guidelines
for Rating Bank Hybrid Securities and Subordinated Debt", published
in November 2009 . Other methodologies and factors that may have
been considered in the process of rating these issuers can also be found
on Moody's website.
Headquartered in Lisbon, Portugal, CGD reported total unaudited
consolidated assets of EUR126.6 billion as of 30 September 2010.
Headquartered in Lisbon, Portugal, BST reported total unaudited
consolidated assets of EUR49.7 billion as of 30 June 2010.
Headquartered in Lisbon, Portugal, BES reported total unaudited
consolidated assets of EUR82.1 billion as of 30 September 2010.
Headquartered in Lisbon, Portugal, BPI reported total unaudited
consolidated assets of EUR47.0 billion as of 30 September 2010.
Headquartered in Luxembourg, ESFG reported total unaudited consolidated
assets of EUR85.4billion as of 30 September 2010.
Headquartered in Oporto, Portugal, BCP reported total unaudited
consolidated assets of EUR99.4 billion as of 30 September 2010.
Headquartered in Lisbon, Portugal, Montepio reported total
unaudited consolidated assets of EUR17.7 billion as of 30 June
2010.
Headquartered in Funchal, Portugal, Banif reported total unaudited
consolidated assets of EUR12.0 billion as of 30 June 2010.
Headquartered in Lisbon, Portugal, BIE reported total unaudited
consolidated assets of EUR5.2 billion as of 30 September 2010.
Headquartered in Lisbon, Portugal, BPN had total audited consolidated
assets of EUR 7.5 billion as at 31 December 2009.
Madrid
Olga Cerqueira
Asst Vice President - Analyst
Financial Institutions Group
London
Johannes Wassenberg
MD - Banking
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's Investors Service Espana, S.A.
Barbara de Braganza, 2
Madrid 28004
Spain
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Moody's reviews for possible downgrade ratings of Portuguese banks
No Related Data.
© 2018 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 ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S 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. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S 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. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S 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 AND MOODY’S 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 OR MOODY’S 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.
CREDIT RATINGS AND MOODY’S 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 the Moody’s 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 SUCH RATING OR 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 rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS 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. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser. 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 rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000. MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.
|
|
