Mps is Moody's latest target. The American rating agency has "expanded" its observation on the Sienese institute's debt rating, which it already began on 9 November. In particular, doubts fall on senior debt and Baa1/Prime-2 deposits and standalone financial strength (Bfrs) D+.
Moody's explained the watch with the uncertainty about Monte dei Paschi's ability to meet the capitalization criteria required by the EBA, the European banking authority, for 3,2 billion euros and about its weak ability to generate capital via internal.
The bank's creditworthiness could instead be confirmed if "the uncertainties regarding the strengthening of capital are removed, an increase in profitability is recorded, the cost/income ratio is reduced below 65%, and it is possible to maintain a good quality of the 'active', concludes the note from the rating agency.
