Standard & Poor's, one of the three most important rating agencies in the world together with Moody's and Fitch does not lean towards Veneto Banca and Popolare di Vicenza, stressing however that "the main risk is linked to the perception that investors and depositors may have".
This was stated by Mirko Sanna, financial service director of S&P in the context of the "2017 Italy Bank & Sovereign Event", recalling that the majority of senior bonds are held by the retail public and that it is necessary to see how savers will react to any problems of the two Veneto banks and Mps.
The manager also highlighted that, a recapitalization combined with a recovery process with the sale of impaired assets "it will reassure depositors and senior holders" with possible "ripple effects on other Italian banks".
“Veneto Banca has a negative outlook and a B rating which incorporates potential state support. Without this support, the rating would currently be triple C+' the manager recalled. “If this were to occur there would certainly be a loss for the subordinated securities that we already take for granted, but there could be a negative effect on Veneto Banca's rating. The further implications of the system must be evaluated according to the decisions that are taken', added the manager.
