Fitch Ratings acted on seven Portuguese banks Dec. 21, following the agency's upgrade of Portugal's long-term foreign- and local-currency issuer default ratings to BBB from BB+.
The agency revised the outlook on the long-term issuer default ratings of Millennium BCP and Caixa Geral de Depósitos SA and unit Caixa - Banco de Investimento SA to positive from stable, while affirming the ratings at BB-. Their short-term issuer default ratings were affirmed at B.
The agency also affirmed the "bb-" viability ratings and BB-/B long- and short-term senior unsecured debt ratings of Millennium BCP and Caixa Geral de Depósitos. The support ratings of Caixa - Banco de Investimento, Caixa Geral de Depósitos and Millennium BCP were affirmed at 3, 4 and 5, respectively. The agency affirmed the support rating floor of Millennium BCP at No Floor and that of Caixa Geral de Depósitos at B.
The positive outlooks reflect Fitch's view that during the next 18 to 24 months, Caixa Geral de Depósitos will see material improvements in profitability by executing its restructuring plan and Millennium BCP will keep reducing sour assets.
The rating agency also upgraded the long-term issuer default ratings of Banco Santander SA units Banco Santander Totta SA and Santander Totta SGPS SA to BBB+ from BBB, with stable outlooks. The agency affirmed both units' F2 short-term issuer default ratings, "bb+" viability ratings and 2 support ratings, while upgrading Santander Totta SGPS' senior unsecured debt to BBB+ from BBB.
Fitch affirmed the long-term issuer default ratings of CaixaBank SA units Banco BPI SA and Banco Português de Investimento SA at BBB-. The outlook on Banco BPI is positive, while that on Banco Portugues de Investimento is stable. The agency also affirmed the short-term issuer default ratings of both units at F3 and their support ratings at 2.
The long- and short-term senior unsecured debt ratings of Banco BPI were affirmed at BBB-/F3. The agency also upgraded the viability rating of Banco BPI to "bb+" from "bb," reflecting the strengthening of its regulatory capital ratios and progress in the implementation of its cost restructuring plan.