Moody’s gives CR ratings to Portuguese banks

Moody's Investors Service said it assigned long- and short-term counterparty risk ratings to six Portuguese banking groups.

The groups include Caixa Geral de Depositos, SA (Ba1/NP), Banco Comercial Portugues, SA (Ba2/NP), Novo Banco, SA (B2/NP), Banco Santander Totta SA (Baa2/P2), Banco BPI SA (Baa2/P2) and Caixa Economica Montepio Geral (B2/NP).

The agency said that in assigning counterparty risk ratings to the banks, Moody's starts with their adjusted baseline credit assessment and uses the agency's existing advanced loss-given-failure approach that considers the level of subordination to liabilities in the bank's balance sheet and assumes a nominal volume of those liabilities.

In addition, Moody's said it incorporated the likelihood of government support for counterparty risk rating liabilities.

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