Fitch cuts Millennium preferreds to CCC-

Fitch Ratings said it downgraded Banco Comercial Portugues, SA's (Millennium bcp) preference shares to CCC- from CCC and removed them from rating watch negative.

The action follows the March 23 publication of the agency's updated bank rating criteria, which introduced + and - modifiers at the CCC/ccc level for long-term issuer default ratings, long-term international debt and deposit ratings, derivative counterparty ratings and viability ratings.

The ratings on subordinated debt and other hybrid capital issued by Millennium bcp are notched down from its viability rating in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which vary considerably, the agency explained.

The preference shares are rated CCC- because Fitch said it believes that economic losses are likely to be moderate before coupon payment resumes, which the agency estimates will occur at the next coupon date after the approval of 2017 accounts.

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