Fitch trims Caixa Economica

Fitch Ratings said it downgraded Caixa Economica Montepio Geral, Caixa Economica Bancaria, SA's (B+/stable/b+) long-term senior unsecured debt ratings to B- from B+ and recovery rating to RR6 from RR4.

The ratings were removed from rating watch negative.

The bank's other ratings are unaffected.

The agency said the action follows the expected introduction of full depositor preference in Portugal subsequent to the transposition of the senior non-preferred amendment to the E.U. Bank Recovery and Resolution Directive into the Portuguese legislation.

Fitch said the downgrade reflects a view that recovery prospects for the bank's senior unsecured creditors in resolution or liquidation will become poor with the anticipated adoption of full depositor preference.

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