Fitch says part-nationalisation of Monte Paschi more likely
MILAN, Sept 16
MILAN, Sept 16 (Reuters) - Rating agency Fitch cut its so-called "viability rating" for Monte dei Paschi, Italy's third biggest lender, on Monday citing what it said was the increased probability of the governemnt taking a large stake in the lender.
Fitch said a 2.5 billion euros capital increase demanded by the European Commission makes even a partial nationalisation of the lender more likely.
As a result it cut the viability rating - a measure of the bank's dependance on state support - to "CCC" from "B", while affirming its long-term rating to "BBB", with negative outlook.
"Fitch believes that the increased amount of capital to be raised and the timeframe for the completion of the capital increase has raised the likelihood of at least a part-nationalisation of the bank materially," it said in statement.
(Reporting by Silvia Aloisi)
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