(Tiper Stock Exchange) – Moody’s has improved the ratings of Bank Monte dei Paschi di Siena by two notches, bringing the standalone Baseline credit assessment to “b1” from “b3” and the long-term deposit rating to “Ba2” from “B1”, with the subordinated debt rating to “B2” from “Caa1”.
The long-term senior unsecured debt rating was improved by 3 notches to “B1” from “Caa1”.
Moody”s points out that the recent capital increase of 2.5 billion “has made it possible to complete the actions necessary to consolidate the solvency of the Bank and rebuild his ability to generate profitability“, reads a note from MPS.
According to Moody”s, the financial results reported by the bank in the last quarter of 2022 “already reflect a structural improvement in profitability, to which the redundancy incentive plan has contributed in addition to the benefits generated by the increase in interest rates”.
The rating agency confirmed a the outlook is stable on long-term deposits and senior unsecured debt rating “which on the one hand reflects the strengthening of the bank’s viability and potential further improvements in its financial profile and, on the other, discounts a general expected deterioration of the context in Italy”.