(The following statement was released by the rating agency)
Sept 17 -
Summary analysis -- Banca Carige SpA ------------------------------ 17-Sep-2012
CREDIT RATING: BB+/Negative/B Country: Italy
Primary SIC: Commercial banks,
Mult. CUSIP6: T0894A
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
Ratings Score Snapshot
Issuer Credit Rating BB+/Negative/B
Business Position Adequate (0)
Capital and Earnings Weak (-2)
Risk Position Moderate (-1)
Funding and Liquidity Average
and Adequate (0)
GRE Support 0
Group Support 0
Sovereign Support +1
Additional Factors 0
Major Rating Factors
-- Solid local franchise in Italy's Liguria region.
-- Funding profile supported by sizable and stable customer deposit base.
-- Efficiency in line with peers.
-- Modest capitalization.
-- Weaker-than-peer financial flexibility.
-- Lower-than-system average coverage of problem assets.
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