(Alliance News) - Banca Monte dei Paschi di Siena Spa announced Wednesday that rating agency Moody's Ratings has upgraded the Bank's ratings by one notch, raising, among others, the standalone Baseline Credit Assessment to "ba2" from "ba3," the long-term deposit rating to "Baa3" from "Ba1," and the long-term senior unsecured debt to "Ba2" from "Ba3."

"Moody's upgrade reflects the improvement in the bank's creditworthiness in recent years, as well as the strengthening of its solvency and re-established ability to generate profits, thanks in part to the EUR2.5 billion capital increase and the favorable interest rate environment," the bank points out.

The ratings improvement also takes into account the increase in capital strength, bolstered by profits in 2023, with the level of the fully loaded CET1 ratio standing at 18.2 percent as of March 31, 2024, well above the 2026 target of the Business Plan.

The outlook on MPS's long-term deposit and senior unsecured debt ratings has been upgraded to stable.

Banca Monte dei Paschi di Siena's stock closed Wednesday up 3.6 percent at EUR5.05 per share.

By Chiara Bruschi, Alliance News reporter

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