Moody's may cut Banca Popolare di Milano
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.