Banco Montepio's HB rating had been revised upwards from AA- to AA in December 2022.
Fitch Ratings has raised the rating on the mortgage-backed bonds of Banco Montepio from AA to AA+, reaching “the maximum rating that can be attributed by the agency to Portuguese issuers,” the bank said in a statement released on Thursday.
“The financial rating agency Fitch Ratings has raised the rating on Banco Montepio’s Mortgage Backed (HB) Bonds by another level, from AA to AA+, with a stable outlook,” according to the statement.
In the document, the financial institution added that this action “stems from the rise in long-term Issuer Default Rating of Banco Montepio,” which in turn results from the reduction of risk in the balance sheet, namely the reduction of non-productive and non-strategic assets to the benefit of the bank’s capital position, as disclosed on 3 July 2023, Montepio added.
On 3 July the rating agency raised the rating on Banco Montepio’s senior unsecured debt from B- to B+, maintaining the positive outlook, as well as revising upwards the ratings of other elements, such as long-term deposits – it had gone from B+ to BB-.
Banco Montepio’s HB rating had been revised upwards from AA- to AA in December 2022.