Moody's may cut Banca Popo­lare di Milano

The Pak Banker - - Front Page -

MI­LAN

Global rat­ing agency Moody's to­day placed on re­view for down­grade the Baa3/Prime-3 long and short­term debt and de­posit rat­ings of Banca Popo­lare di Milano (BPM) and the D+ stan­dalone bank fi­nan­cial strength rat­ing (BFSR), equiv­a­lent to a stan­dalone credit as­sess­ment of ba1.

The re­view pri­mar­ily re­flects Moody's view that BPM's in­ter­nal cap­i­tal gen­er­a­tion is low and that its as­set qual­ity is weak­en­ing, against the back­ground of a weak eco­nomic en­vi­ron­ment. The re­view will fo­cus on the abil­ity of BPM's new man­age­ment to im­prove the bank's fi­nan­cial flex­i­bil­ity. The bank's busi­ness plan shows a planned re­duc­tion of its sig­nif­i­cant real-es­tate con­cen­tra­tion from 24% of loans in 2011 to a pro­jected 21% of the out­stand­ing loans in 2015.

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