Moody's on Dec. 19 confirmed Banca Carige SpA's long-term issuer and bank deposit ratings at Caa3 and Caa1, respectively, with a stable outlook on the ratings; the action marked the completion of a review for downgrade initiated Aug. 7.
In addition, the rating agency downgraded Carige's baseline and adjusted baseline credit assessments to "ca" from "caa2," and confirmed the Italian bank's long-term counterparty risk assessment and counterparty risk ratings at B2(cr) and B3, respectively.
Moody's said the stable outlook reflects its view that despite Carige's weak stand-alone financials, senior creditors, particularly depositors, will likely be shielded from additional risk by external support.
Meanwhile, the downgrade of Carige's baseline and adjusted baseline credit assessments reflects Moody's view that the support the bank got from the voluntary intervention scheme of the Italian interbank deposit protection fund and Carige's pursuit of strategic alliances demonstrate its need for external support to secure its viability, the agency added.
Carige's NP short-term bank deposit rating and counterparty risk ratings, as well as its NP(cr) short-term counterparty risk assessment, were also affirmed.