The outlook remains stable according to the statement submitted to the Securities Market Commission (CMVM).
This marks the third consecutive upgrade awarded by Fitch to the bank in the past two years, totaling an improvement of four levels.
Fitch also upgraded several long-term risk ratings: the deposit rating moved from BBB- to BBB, the viability rating (VR) from bb+ to bbb-, the long-term issuer default rating (LT IDR) from BB+ to BBB-, and senior non-preferred debt from BB to BB+, according to the financial institution.
The credit rating agency explained that the progress reflects Banco Montepio’s strong capitalization, which exceeded expectations. This was supported by a reduction in non-performing assets and the resultant decrease in capital pressure.
Fitch further highlighted the improvement in the quality of credit provided, as well as the financing profile, as evidenced by the recent debt issuance through a public offering, amidst increased investor confidence.
The agency’s assessment indicates that “Banco Montepio is now prepared to accelerate the execution of its strategic plan, enhance its business model, gradually increase market share, and consolidate its levels of solidity,” the document stated.
