The share of Banca Popolare di Milano slips in Piazza Affari, dropping 2,8% in mid-morning, blaming the worst drop in the Ftse Mib. Weigh the decision of Moody's, that cut Bpm's long-term debt rating by three notches, taking it from Baa3 to Ba3, moreover with a negative outlook.
What worries the analysts of the American agency are primarily the deterioration in the quality of assets, the concentration on the real estate sector, the pressure on profitability which is expected to continue after the losses recorded in 2011 and 2012 and the modest capital base, which provides a limited cushion to absorb losses.
Moody's new examination will focus on a series of factors: the announced capital increase, which should be approved by the shareholders' meeting on June 22; the potential transformation into a spa, which however has recently been shelved; progress in improving corporate governance; the quarterly results and the outcome of the Bank of Italy inspection, which could lead to the removal of the additional prudential requirements imposed by the supervisory authorities and therefore to an improvement in capital ratios.
Moody's notes that the first quarter 2013, announced on Tuesday, does not show any concrete changes in the Bank's financial position.
