Moody’s rating upgrade has very relevant meaning for BCP bank

  • Lusa
  • 15 June 2022

Moody's rating agency on Tuesday upgraded BCP's rating, placing the bank's debt at investment grade and removing it from "junk" with a stable outlook, Moody's said in a statement to the market.

The chief executive of BCP, Miguel Maya, has said that the upward revision of the bank’s rating by Moody’s “has a very relevant meaning”.

The bank’s CEO, Miguel Maya, said on Tuesday that the upward revision of the bank’s rating by Moody’s “has a very relevant meaning”.

Moody’s rating agency on Tuesday upgraded BCP’s rating, placing the bank’s debt at investment grade and removing it from “junk” with a stable outlook, Moody’s said in a statement to the market.

According to Miguel Maya, the banking institution has been able to “promote the transformation of business models and processes, to achieve and consolidate leadership in customer satisfaction in the corporate and individual segments in multiple business lines, to significantly improve the quality of the balance sheet, to improve efficiency and to make progress in profitability”.

“We are creating the conditions to be able to generate more value for the company, more value for shareholders, more value for employees,” he stressed.

Greeting all the departments of BCP, on behalf of the executive committee, Miguel Maya also considered that this was “a fundamental test that continues to require resilience, innovation and execution capacity given that the macroeconomic context continues to be very challenging”.

“There is no room to slow down, on the contrary, we must continue to be able to reinvent the bank in order to deserve the preference and trust of customers and to become more efficient and generate more prosperity,” he added.

In a note, published on Tuesday by the Portuguese Securities Market Commission (CMVM), BCP said that “Moody’s, as part of its regular review, has upgraded BCP’s senior unsecured debt from Ba1/Prime-2 to Baa3/Prime-2.

This improvement reflects “the reduction in the stock of non-performing assets (NPA) and the improvement in capitalisation levels in recent years”, says the bank led by Miguel Maya.

In addition, the revision reflects “the improvement in domestic profitability, which allows offsetting the impact of provisions for legal risk in Poland, as well as the bank’s ongoing funding plan to comply with the minimum requirement for own funds and eligible liabilities (“MREL” or “Minimum Requirement for own funds and Eligible Liabilities”), including the combined buffer requirement (“CBR” or “Combined Buffer Requirement”), as of 1 January 2024″.

In parallel, “the rating agency reaffirmed the bank’s baseline credit assessment (BCA) at ba2; the deposit ratings at Baa2/Prime-2, the senior non-preferred debt rating at (P)Ba2; the non-perpetual subordinated debt rating at (P)Ba3; and the preferred shares rating at B2(hyb),” it said. The adjusted BCA measures the probability of a bank needing support in case of default.

In addition, the outlook for “the long-term ratings for deposits and unsecured senior debt remain stable, reflecting Moody’s view that the bank’s credit quality will remain stable over the review horizon,” he added.