Fitch upgraded its outlook on BCP and Caixa Geral de Depósitos (CGD), affirming the ratings of both financial institutions. The decisions were communicated on Monday, October 11, by the financial rating agency.
In the case of the bank headed by Miguel Maia, the “outlook” changed from negative to stable, while maintaining the “rating” at the BB level, which corresponds to the second level of the category of speculative investments (the so-called “junk”). ). The ‘Outlook’ review reflects primarily the sustainability of BCP’s asset quality and profitability since [o início] a pandemic crisis fueled by an efficient and highly diversified business model, ”reads a note released Monday by Fitch.
Fitch predicts that the bank “will be able to generate a profit before impairment sufficient to cover additional impairments” due to the deterioration in asset quality in Portugal and the potential impact of the increase in provisions on legal risks in Poland.
The amendment also takes into account the fact that “short-term risks to Portugal’s economic outlook have diminished.”
In the case of the state-owned bank, the outlook was also revised upward from negative to positive, with Fitch affirming the rating at BB + (the first level of “junk”, that is, simply a “step” to enter the rating). quality investment category). The change “reflects CGD’s resilience and improved asset quality and relatively stable profitability since [o início] pandemic crisis ”, can be read in another note of the state bank.
Analysts also expect Caixa to be able to offset future impacts from a possible deterioration in asset quality. The survey “also reflects an improvement in capitalization levels, which we expect to continue to significantly outperform” the performance of other national and medium-sized banks in southern Europe.
