Fitch puts Italy, Spain's banks on watch
   
Quotes

Fitch puts Italy, Spain's banks on watch

Last Updated: Wednesday, December 21, 2011, 10:55
 
 Comment 0
 
Fitch puts Italy, Spain's banks on watch
Milan: Fitch Ratings downgraded on Tuesday its rating on Italy's biggest bank UniCredit SpA and threatened rating cuts on seven other Italian banks and several Spanish and French banks following recent changes in its outlook on euro zone sovereign ratings.

"The downgrade reflects the material market and fundamental challenges facing many banks globally, particularly in Europe," Fitch said in its statement on UniCredit.

UniCredit's long-term issuer default rating has been cut to 'A-', from 'A', and the short-term IDR to 'F2', from 'F1', with the ratings kept on 'watch negative', the agency said in a statement.

The seven Italian banks put on 'watch negative' by Fitch include its largest retail lender Intesa Sanpaolo, the country's third-biggest lender Banca Monte dei Paschi di Siena and UBI Banca.

Intesa currently has a long-term 'A' rating, BMPS 'BBB+', and UBI 'A-', Fitch said.

In Spain, the eight banks on 'watch negative' include Banco Santander, Banco Bilbao Vizcaya Argentaria and CaixaBank SA.

In France Fitch Ratings revised to 'negative' from 'stable' the outlook on Societe Generale, Groupe BPCE, Dexia Credit Local and La Banque Postale.

The move follows Fitch's decision last week to lower the outlook on France's triple-A sovereign rating to negative. Standard & Poor's put France and 14 other euro zone countries under review at the start of the month.

The head of French securities market regulator AMF said on Tuesday it would take a miracle for the country to keep its top-notch credit rating and warned of far-reaching effects for the euro zone's second-largest economy should it lose it.

In Belgium, Fitch said it could cut the ratings of KBC and Dexia Bank Belgium.

On December 16 Fitch put on 'watch negative' the sovereign ratings of Italy, Belgium, Spain, Slovenia, Ireland and Cyprus citing the adverse effect of the euro zone crisis on economic and financial stability.

Bureau Report



First Published: Wednesday, December 21, 2011, 10:55


Comments


comments powered by Disqus
New Vento 2015
New Vento 2015
Audi all-new SUV Q3
Audi all-new SUV Q3
Indian Billionaire Daughters
Indian Billionaire Daughters
TOP 5  happy cities of India
TOP 5 happy cities of India
Forbes Top 10 Billionaires 2015
Forbes Top 10 Billionaires 2015

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved