Rating Action:
Moody's downgrades Banca Carige S.p.A. and places ratings under review for downgrade
07 Aug 2018
London, 07 August 2018 -- Moody's Investors Service ("Moody's") downgraded the baseline credit assessment (BCA) of Banca Carige S.p.A. (Carige) to caa2 from caa1, its long-term issuer rating to Caa3 from Caa2 and its long-term deposit rating to Caa1 from B3. Moody's also placed all of Carige's long-term ratings and assessments under review for further downgrade. The ratings were downgraded in light of the recent corporate governance tensions which in Moody's view are an impediment to the bank's effective restructuring. The downgrade and review for further downgrade also reflect the heightened risk that Carige could be placed in resolution following the European Central Bank's rejection of the bank's capital conservation plan (CCP). The long-term counterparty risk ratings (CRRs) were downgraded by two notches to B3 and placed on review for further downgrade. This follows the downgrade of the BCA and also corrects a prior error.
