Nightmare opening in Piazza Affari for the titles of Banca Carige and of Credito Valtellinese. The Ligurian bank's ordinary and savings shares are temporarily suspended from trading pending a press release. This was announced by Borsa Italiana after the Ligurian bank announced that the conditions for forming the functional guarantee syndicate for the 560 million capital increase have not been fully met.
Carige wrote in a note that "despite obtaining the authorization from the Supervisory Authorities and the positive feedback received for the formal acquisition of expressions of interest and specific guarantee obligations from new institutional investors, no fully fulfilled the conditions for the constitution of the guarantee consortium".
A board of directors was convened for 9.30 this morning "to inform councilors and mayors of the situation and evaluate the next steps". The chief executive officer, leveraging on what has already been achieved in the capital strengthening plan presented on 3 July last - concludes the note - will verify in the next few hours the existence of the conditions for the continuation of the Bank's recovery plan and for a possible extension of the terms of the capital increase operation.
Intent, the title of the Valtellinese credit is suspended in a volatility auction with a drop of 8,38%, at 1,301 euros per share. Stock prices are penalized by the decision of the Canadian agency Dbrs to reduce the Issuer and Senior Long-Term Debt & Deposits ratings to BB from BB (high). Also lowered the Short-Term Debt and Deposits ratings to R-4 from R-3 and the Intrinsic Assessment (IA) to BB from BB (high), while the support designation was kept at SA3.
The bank's subordinated debt was lowered to B (high). The rating is under review with negative implications. Since the day of the announcement of the 700 million capital increase, which took place last November 7, the stock has lost over 50% of its value.
The two banking cases weigh on the entire sector, which in turn pushes the Ftse Eb in the red by 0,2%. Bpm bank loses 2,34%, B for Bank 1,7%, Ubi 0,8% and Unicredit 0,6%. It also falls Ps, which leaves 3% on the ground.
