Quantcast

Moody’s downgrades world’s oldest bank to ‘junk’

By Agence France-Presse
Thursday, October 18, 2012 7:40 EDT
google plus icon
The headquarters of the Monte Dei paschi di Siena bank on October 5, 2012 in Siena, via AFP
 
  • Print Friendly and PDF
  • Email this page

Moody’s credit rating agency on Thursday downgraded the world’s oldest bank, Italy’s Banca Monte dei Paschi di Siena, to “junk” status on worries government recapitalisation plans will prove insufficient.

The lowering of BMPS’s rating by two notches to “Baaa3″, a non-investment grade, reflects Moody’s view that “there remains a material probability that the bank will need to seek further external support,” the agency said.

Critically exposed to the eurozone debt crisis, in June BMPS was forced to accept a government bailout, borrowing roughly 1.5 billion euros ($1.87 billion) in order to pay off debt and shore up its capital.

The bank has also said it would reduce its workforce by 4,600 people by 2015.

Agence France-Presse
Agence France-Presse
AFP journalists cover wars, conflicts, politics, science, health, the environment, technology, fashion, entertainment, the offbeat, sports and a whole lot more in text, photographs, video, graphics and online.
 
 
 
 
By commenting, you agree to our terms of service
and to abide by our commenting policy.
 
Google+