Standard & Poor’s suspends debt rating issued by BES – Expresso

Standard & Poor's suspends debt rating issued by BES – Expresso

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A financial rating agency Standard & amp; Poor’s (S & P) announced Friday it has suspended the rating assigned to the senior debt of BES, now transferred to the new bank, and changed the perspective from negative to “developing”.

In a statement, S & <- end st_tag_p -> <- - begin st_tag_p!>, P reported that “reviewed the implications of perspective, from negative to in development of B-note given to senior and / or debt guaranteed by Banco Espírito Santo (BES), which was transferred to the New Bank “, adding that it had suspended that note

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Classification “in development” applies the criteria of S & P, “in rare situations in which future events are so unclear that The rating may be raised or lowered. ”

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In the particular case, “the term ‘developing’ reflects, on the one hand, understanding [S & P] as the profile of this debt may improve once the new bank, which will receive a capital injection of € 4.9 billion (…), took almost all the senior unsecured debt BES “.

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In the agency’s opinion, “this debt is now separated from problematic exposures BES”.

On the other hand, Standard & amp; Poor’s admitted, “since there is still no sufficient information to new responsibilities or risks may emerge for New Bank or the new institution can not remain immune to the potential risk of litigation that BES can come to grips with.”

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The suspension of the B-note debt instruments issued or guaranteed by BES that were transferred to the New Bank was justified by the fact that the S & P not be doing the rating of New Bank nor have satisfactory quality information that allows you to track the evolution of the rating.

S & <- end st_tag_p -> <- - begin st_tag_p!>; Said that P can restate note that if you receive the information you need to keep the rating and believe that such information will reach you on an ongoing basis. Otherwise, remove this classification.

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