The headquarters of the Monte Dei paschi di Siena bank on October 5, 2012 in Siena, in
the Italian region of Tuscany
Posted on 10/18/2012 1:07:53 AM PDT by bruinbirdman
Moody's credit rating agency on Thursday downgraded the world's oldest bank, Italy's Banca Monte dei Paschi di Siena, to "junk" status on worries government recapitalisation plans will prove insufficient.
The headquarters of the Monte Dei paschi di Siena bank on October 5, 2012 in Siena, in
the Italian region of Tuscany
The lowering of BMPS's rating by two notches to "Baaa3", a non-investment grade, reflects Moody's view that "there remains a material probability that the bank will need to seek further external support," the agency said.
Critically exposed to the eurozone debt crisis, in June BMPS was forced to accept a government bailout, borrowing roughly 1.5 billion euros ($1.87 billion) in order to pay off debt and shore up its capital.
The bank has also said it would reduce its workforce by 4,600 people by 2015.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.