S&P: “We assess the ability of the new management of GBD” – Jornal de Negócios – Portugal

The Standard & Poor’s continues with the rating of the Caixa Geral de Depósitos under review with positive implications, a process that began in August after the announcement of the agreement in principle with Brussels for the recapitalization of a public bank. But it throws some warnings about the timely completion of the process of recapitalisation and that you need to assess the ability of future management to proceed with strategic objectives.

The agency notes that despite the resignation of António Domingues and other officers, “the agreement in principle announced in August continues, and the Government is working to find a team to substitute for the management of the GBD”. But, in a note released Wednesday, reveals that will “assess the ability of new management to comply in a timely manner the strategic objectives of the GBD and the improvement of profitability and asset quality”.

Another factor that the S&P will pay close attention to “monitoring closely”, is “if the recent developments will result in strategic changes to the plan of recapitalization already announced, including the term that it will be necessary to materialize”.

So, the S&P continues to admit a possible rise of the “rating” after the trial period. After this Tuesday, the DBRS has placed the rating of public bank under negative surveillance after the resignation of António Domingues and the delay in the process of recapitalisation. The agency of canada classifies the CGD at BBB (low), a level above the level seen as “garbage” by the markets. But threatens to cut the rating if the problems of corporate governance are reflected in the confidence of investors and the profitability of the bank.

As the S&P has a rating of BB-, three levels below investment grade. The fact that it has the rating under review with positive implications to indicate the possibility of the classification of the Box with the S&P to improve. But that decision “remains subject to the formal approval of the recapitalisation plan of the GBD on the part of the European Commission and of the specific details on the amount and use of capital injection”.