Moody's downgrades Italian lenders Popolare Milano, Banca Carige
MILAN, Sept 18
MILAN, Sept 18 (Reuters) - Rating agency Moody's downgraded Banca Popolare di Milano and Banca Carige on Wednesday, underlining the challenges Italian mid-sized lenders are facing to strengthen their capital before falling under the European Central Bank's supervision next year.
The agency cut Popolare di Milano's long-term debt and deposit ratings to B1 from Ba3, with negative outlook, it said in a statement.
Separately it lowered Banca Carige's long-term issuer and deposit rating to B2 from Ba2, with ratings on review for further downgrade.
The agency cited the deterioration in asset quality for both Popolare Milano and Carige, while bank-specific factors were putting at risk the lenders' efforts to strengthen their capital, it said.
Banca Carige's planned 800-million euros capital strengthening may not be sufficient to reach a level of capital commensurable with its current standalone rating, Moody's said. (Reporting by Francesca Landini)
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