Moody’s yesterday (Thursday) placed on review for upgrade Banco BPI covered bonds and those of CaixaBank on review for downgrade, after Caixabank on Tuesday launched a public tender offer for the 55.9% of BPI’s capital that it does not already own.

CaixaBank’s full takeover bid for the Portuguese lender will have a negative impact on CaixaBank’s solvency, possibly resulting in a cut to its Baa3 issuer rating, Moody’s said, while an acquisition by a stronger bank could result in upward pressure for BPI, potentially boosting its issuer rating of Ba3.

The rating agency put on review for downgrade CaixaBank mortgage and public sector covered bonds, which are rated A1, while the Baa2 mortgage and Baa3 public sector covered bonds of BPI were put on review for upgrade.