Tuesday, June 14, 2016

Moody’s maintains rating of BCP – Observer

The Moody’s kept this Tuesday the ‘rating’ of Banco Comercial Portuguese (BCP) in B1 with stable outlook, assuming that the note may be reviewed if the bank proceed with the purchase of the New Bank.

to maintain the ‘rating’, the rating agency also takes account of the upward revision of the baseline credit assessment (BCA), or the credit quality of a financial institution by itself without relying on any State aid, which increased from Caa1 to b3.

“NO Overall, Moody’s believes that BCP’s risk absorption capacity is very modest when compared to other major European banks. However, the agency expects the bank to be able to get a ‘cushion’ of additional capital without requiring external support, “he said in a statement.

The rating action Tuesday Moody’s not took into account the potential impact of the purchase of the New Bank, BCP has admitted publicly come to try to buy.

“Today, the BCP is not allowed to proceed with any acquisition and that the European Commission must lift the ban before the bank formally submit a proposal to the New Bank. If the BCP receive relevant permits and proceed with a formal offer, Moody’s will examine the implications of this transaction in BCP’s credit profile, “said the agency.

Moody’s also noted that the BCP has yet to return about 750 million euros in Cocos (in contingent capital instruments) provided by the Portuguese State in 2012, which has to happen before mid-2017.

This will also have an impact on the rating assigned by Moody’s to the bank.

in the Lisbon stock exchange, the BCP shares were to be worth 0.019 euros, after successive losses in recent sessions, having fallen 4.46% in trading Tuesday.

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