BPI. Negotiations already ongoing with rating under threat – Daily News – Lisbon

While Santoro and cash do not close agreement, Moody “s threat rating cut: BPI has 5 billion exposure to Angola

Moody ‘s yesterday said the first impact of a lack of agreement between the BPI shareholders about excessive exposure to Angola: the rating of the bank, since the third speculative level, will still be revised higher low . For now, the only financial agency changed the outlook from “stable” to “under review for downgrade.” In the coming weeks, and if not resolved the shareholder imbroglio, the cut in credit credit rating becomes a reality

Yesterday was another day of suspense and anticipation:. Trading in shares of BPI on the stock Exchange was suspended throughout the session, with the rumors about the imminent official agreement to renew the expectations that would end the stalemate in the bank led by Fernando Ulrich. But, and again, nothing was closed: the early evening the CaixaBank referring to DN / Mad Money “there is no new news” and Santoro communicated to the Portuguese Securities Market Commission (CMVM) that “effectively have been held negotiations with representatives of CaixaBank, but that on this date, there is no agreement. “

the publication of the statement by Santoro was requested by the CMVM” following the news published by the media on the conclusion of the negotiation process between the shareholders of Banco BPI, Santoro Finance and CaixaBank, “recalls Isabel’s holding of Santos. Reuters wrote that the Catalan group and the Angolan businesswoman would close the final details of the agreement but which, according to source close to the case cited by the agency, this was a phase “constant exchange protocols between the parties to the agreement, which is complex and involves many entities. “

the agreement is not enough

the reference to the complexity of the agreement does not come by chance, since the negotiations are not just BPI nor only two private shareholders of a bank. Involve also two governments directly – Angola and Portugal – other indirectly – Spain -, and at least two banks beyond the BPI:. BCP in Portugal and Banco Fomento de Angola (BFA)
 On the one hand, the CaixaBank wants to take the Angolan stake in BPI to be free of the constraints associated with the statutes of the bank and thus solve the over exposure of the BPI Angola the way you want. At the same time, Isabel dos Santos wants to keep control of the BFA – now majority-owned by BPI – and ensure that does not leave the bank in Portugal, which is why it seeks to ensure a prominent stake in BCP. The entrance could be through a capital increase that would allow the BCP repay amounts still owed to the state.

Once and for all to move forward and beyond first they all woke up the various prices involved are required several permits, as the approval of the control exchange at BFA by Banco Nacional de Angola, demanding further the advance of a takeover bid (OPA) of CaixaBank for the remaining capital of BPI that lacks after taking the position of Santoro and probably the BIC (2.25%). The price at which this tender offer will be launched will be examined by the CMVM. In the midst of all this, the European Central Bank will still have a say on whether Isabel entry of Holies in BCP.

Exposure 5 billion

60% of profits, 20% of assets based in Angola and 4.9 billion euros exposure to the Angolan State and the National Bank of Angola, excess exposure BPI to this African country “is worrying each more “Moody” s, acknowledged the financial agency in a statement in which he announced that Fernando Ulrich bank’s rating has to be re-assessment to a court. BPI’s rating is already today on the third level of speculative securities .

“the review for downgrade was triggered by the increased risks in BPI’s credit profile,” explains Moody “s. “The lack of visible progress to resolve the violation of regulatory limits on exposure to Angola” and “own exposure risks to Angola” are the reasons.

 Moody ‘s notes that BPI had at the end of 2015, with an exposure of € 3.6 billion to the Angolan State and 1.3 billion to the National Bank of Angola, exhibitions “that exceed the limits set by ECB 3 billion and 200 million respectively “and this excessive concern for two reasons:.. first, because the ECB gave the BPI until April 10 to solve the problem, otherwise it will be subject to corrective measures after because the Angolan economy is in trouble, which increases the risk of exposure.

in addition to the question of Angola, Moody ‘s also expresses concern about “the government crystallization of society” at the BIS, noting the statutes of the bank, that limit the votes to 20% of capital. It was precisely this limitation that prevented the bank had already solved the impasse in which he lives. BPI came forward with a proposal to create a new entity, in which African assets thus no longer weigh on the balance sheet stay concentrated. The plan was leaded by Isabel dos Santos. Later, he tried desblindar the statutes to allow CaixaBank to vote with all of its shares, but again without success. It is expected a solution anytime.