Moody's on Oct. 9 downgraded the long- and short-term issuer ratings of Cassa Centrale Banca Credito Cooperativo Italiano SpA to Ba1/Not Prime from Baa3/P-3, concluding its review for downgrade.
The outlook on the long-term issuer rating was changed to stable from rating under review, Moody's said. Cassa Centrale Banca's baseline and adjusted baseline credit assessments were downgraded to "ba1" from "baa3," concluding the reviews begun in June.
The agency moved to review for upgrade from review for downgrade the Baa3/P-3 long- and short-term deposit ratings and Baa3(cr)/P-3(cr) long- and short-term counterparty risk assessments.
The downgrade of the issuer ratings was driven by the downgrade of the adjusted baseline credit assessment, the agency said. The adjusted baseline credit assessment is aligned with the baseline credit assessment, the downgrade of which reflected the creditworthiness of the newly formed Gruppo Cassa Centrale.
However, Moody's placed the deposit ratings and counterparty risk assessments on review for upgrade as it believes that Cassa Centrale Banca Gruppo Bancario as a whole may have sufficient debt and deposits to reduce loss-given-failure for these instruments.
