TEXT-Fitch cuts Banco Popular Portugal IDR to 'BB+'

June 14 - Fitch Ratings has downgraded Banco Popular Portugal SA's (BPP)
Long-term Issuer Default Rating (IDR) to 'BB+' from 'BBB-' and its Short-term
IDR to 'B' from 'F3'. The Long-term IDR has a Negative Outlook. BPP's Support
Rating has also been downgraded to '3' from '2'.

These rating actions reflect a weakening of potential parent bank support
following the downgrade of Spain's Banco Popular Espanol, S.A.'s
(Popular; 'BBB-'/Negative; see "Fitch Takes Rating Actions on Spanish Banks
Following Sovereign Downgrade" dated June 12, 2012 on www.fitchratings.com).

Fitch believes there still to be a moderate probability that BPP would be
supported by Popular, if needed, and this drives its Long-term IDR. BPP is now
at the same level as the Portuguese sovereign's Long-Term IDR ('BB+'/Negative),
and its ratings remain sensitive to a downgrade of the Long-term IDR of either
Popular, Portugal, or both.

BPP is a niche player in the Portuguese banking sector and is a wholly owned
subsidiary of Popular. Since 2003 the focus has been on transforming BPP from a
real estate bank into a SME and retail bank.

The impact, if any, of the above rating actions on BPP's covered bonds will be
detailed in a separate comment.

Additional information is available at 'www.fitchratings.com'.

The ratings above were solicited by, or on behalf of, the issuer, and therefore,
Fitch has been compensated for the provision of the ratings.

Applicable criteria, 'Global Financial Institutions Rating Criteria' dated 16
August 2011 and 'Evaluating Corporate Governance' dated 13 December 2011 are
available at www.fitchratings.com.

Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
Evaluating Corporate Governance