Fitch Ratings on Jan. 9 upgraded the long- and short-term issuer default ratings of Banca Carige SpA's to B-/B from CCC/C and revised the outlook on the long-term rating to stable from Rating Watch Positive.
The rating agency also upgraded the Italian lender's viability rating to "b-" from "f," the long- and short-term senior unsecured ratings to CCC/B from CC/C and the long-term deposit rating to B- from CCC.
The upgrade of the ratings follows the completion of the bank's planned €700 million capital increase, the issuance of €200 million subordinated debt and the disposal of a €2.4 billion nonperforming loan portfolio to AMCO - Asset Management Company SpA.
Fitch noted that the upgrade reflects the agency's view that the capital strengthening and balance sheet de-risking have restored the bank's viability and will help stabilize its funding.
The rating agency also affirmed Carige's support rating and support floor rating at 5 and No Floor, respectively.