DBRS starts coverage of Monte Paschi with BBB rating

MILAN Fri Jan 18, 2013 6:10am EST

MILAN Jan 18 (Reuters) - Rating agency DBRS has started coverage of Italy's third biggest lender, Banca Monte dei Paschi di Siena, with a BBB rating, the lender said on Friday.

The outlook is negative.

The agency said that despite Monte dei Paschi's sound national network and a solid turnaround plan being implemented by its management, the rating reflected significant difficulties due to "poor earnings, weak asset quality and a challenged capital and funding profile."

(Reporting By Silvia Aloisi)