Moody’s could cut Caixabank, lift Banco BPI

Moody's Investors Service said it placed Caixabank’s Baa3 long-term debt, issuer and deposit ratings, Ba2 subordinated debt rating and the D+ bank financial strength rating (equivalent to a ba1 baseline credit assessment) on review for downgrade.

The agency also placed Caixabank's Prime-3 short-term debt and deposit ratings on review for downgrade.

At the same time, Moody's placed the Ba3 long-term debt, issuer and deposit ratings of Banco BPI SA (BPI) and its supported entities, its B2 subordinated debt rating, the provisional B3 junior subordinated debt rating and the Caa1(hyb) preferred shares rating on review for upgrade.

The E+ bank financial strength rating (equivalent to a b1 baseline credit assessment) and the Not-Prime short-term debt and deposit ratings were not affected and remain unchanged.

Moody’s said the review for downgrade reflects Caixabank's Feb. 17 announcement to launch a public tender offer for the acquisition of Banco BPI's not-yet-owned share capital (55.9%), and the negative impact the deal will have on Caixabank's solvency.

The review for upgrade for BPI indicates the upward pressure that could stem from the acquisition by a stronger bank.

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