September 17, 2012 / 12:06 PM / 5 years ago

TEXT-S&P summary: Banca Carige SpA

(The following statement was released by the rating agency)

Sept 17 -

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Summary analysis -- Banca Carige SpA ------------------------------ 17-Sep-2012

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CREDIT RATING: BB+/Negative/B Country: Italy

Primary SIC: Commercial banks,

nec

Mult. CUSIP6: T0894A

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Credit Rating History:

Local currency Foreign currency

03-Aug-2012 BB+/B BB+/B

10-Feb-2012 BBB-/A-3 BBB-/A-3

07-Dec-2011 BBB/A-2 BBB/A-2

18-Oct-2011 BBB+/A-2 BBB+/A-2

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Ratings Score Snapshot

Issuer Credit Rating BB+/Negative/B

SACP bb

Anchor bbb

Business Position Adequate (0)

Capital and Earnings Weak (-2)

Risk Position Moderate (-1)

Funding and Liquidity Average

and Adequate (0)

Support +1

GRE Support 0

Group Support 0

Sovereign Support +1

Additional Factors 0

Major Rating Factors

Strengths:

-- Solid local franchise in Italy's Liguria region.

-- Funding profile supported by sizable and stable customer deposit base.

-- Efficiency in line with peers.

Weaknesses:

-- Modest capitalization.

-- Weaker-than-peer financial flexibility.

-- Lower-than-system average coverage of problem assets.

Outlook

Standard & Poor's outlook on Italy-based Banca Carige SpA (Carige) is negative, reflecting the possibility of a downgrade if we were to lower our ratings on the Republic of Italy (unsolicited, BBB+/Negative/A-2) or we anticipate that a further deterioration in domestic economic and banking industry conditions could weaken Carige's stand-alone credit profile (SACP).

We could revise the outlook to stable if we anticipate an improvement in economic and operating conditions for the Italian banking system, and a strengthening of Carige's capital and earnings position, as well a pronounced easing of asset quality deterioration trends.

Related Criteria And Research

-- Banks: Rating Methodology And Assumptions, Nov. 9, 2011

-- Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011

-- Group Rating Methodology And Assumptions, Nov. 9, 2011

-- Bank Hybrid Capital Methodology And Assumptions, Nov. 1, 2011

-- BICRA On Italy Maintained At Group '4', Economic Risk Score Revised To '5' On Increased Credit Risk For Italian Banks, Aug. 3, 2012

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