Moody’s cuts Ibercaja on Caja3 integration, asset quality
Thursday, 28 November 2013
Moody’s cut Ibercaja Banco from Ba2 to Ba3 today (Thursday) because it considers that the bank’s financial profile has weakened after the integration with Caja3 and due to deterioration of asset quality, especially in the corporate segment.
The integration of Grupo Banco Cajatres (Caja3) has weakened the combined entity’s financial strength, according to the rating agency.
“On a consolidated basis (post-integration) Moody’s considers Ibercaja’s risk-absorption capacity to be weaker, based on the incremental expected losses in the combined entity’s risk assets according to the rating agency’s own scenario analyses,” said Moody’s.
It also cited asset quality deterioration throughout the first nine months of 2013 as a factor contributing to the downgrade and said that it anticipates a further decline in asset quality for the remainder of 2013 and during 2014, affecting exposures related to the real estate and construction sectors, as well as loans extended to companies in other economic sectors.
The rating is on negative outlook.
Moody’s cut Ibercaja Banco from Ba2 to Ba3 today (Thursday) because it considers that the bank’s financial profile has weakened after the integration with Caja3 and due to deterioration of asset quality, especially in the corporate segment.
The integration of Grupo Banco Cajatres (Caja3) has weakened the combined entity’s financial strength, according to the rating agency.
“On a consolidated basis (post-integration) Moody’s considers Ibercaja’s risk-absorption capacity to be weaker, based on the incremental expected losses in the combined entity’s risk assets according to the rating agency’s own scenario analyses,” said Moody’s.
It also cited asset quality deterioration throughout the first nine months of 2013 as a factor contributing to the downgrade and said that it anticipates a further decline in asset quality for the remainder of 2013 and during 2014, affecting exposures related to the real estate and construction sectors, as well as loans extended to companies in other economic sectors.
The rating is on negative outlook.
Moody’s cut Ibercaja Banco from Ba2 to Ba3 today (Thursday) because it considers that the bank’s financial profile has weakened after the integration with Caja3 and due to deterioration of asset quality, especially in the corporate segment.
The integration of Grupo Banco Cajatres (Caja3) has weakened the combined entity’s financial strength, according to the rating agency.
“On a consolidated basis (post-integration) Moody’s considers Ibercaja’s risk-absorption capacity to be weaker, based on the incremental expected losses in the combined entity’s risk assets according to the rating agency’s own scenario analyses,” said Moody’s.
It also cited asset quality deterioration throughout the first nine months of 2013 as a factor contributing to the downgrade and said that it anticipates a further decline in asset quality for the remainder of 2013 and during 2014, affecting exposures related to the real estate and construction sectors, as well as loans extended to companies in other economic sectors.
The rating is on negative outlook.
