DBRS on July 12 placed Banca Monte dei Paschi di Siena SpA's ratings underreview with negative implications.
The review includes the bank's BB senior long-term debt and depositsrating, R-4 short-term debt and deposits rating and BBB(low)/R-2(middle) long-and short-term critical obligations ratings. The rating agencywill also reassess the bank's BB intrinsic assessment as part of the review.
The review reflects the additional challenges for the bank'scapital position following the ECB's July 4 request that Monte dei Paschi speed up the process ofreducing its nonperforming loan balance. During the review, expected to beconcluded within three months, DBRS will focus on the effect of the ECB'srequest and on where the bank might derive capital, as well as the potentialfor burden-sharing and bail-in of creditors under European state-aid rules.