Banca Monte on negative watch, Santander affirmed on Antonveneta sale - Fitch |
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Mon, 12 Nov 2007 12:57
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MUMBAI (Thomson Financial) - Fitch Ratings said it placed Banca Monte dei Paschi di Siena's (MPS) 'A+' long-term issuer default rating on negative watch and affirmed the company's short-term issuer default rating.The move follows the announcement that MPS has reached an agreement with Banco Santander to acquire Banca Antonveneta's (ANTV) for 9 bln eur in cash. While ANTV is currently indirectly owned by RFS Holdings, Santander was to be the ultimate owner of ANTV under the consortium agreement.Fitch also affirmed MPS's support rating floor at 'BBB+'. Consequently, the ratings agency has also placed MPS's fully-owned unit Banca Agricola Mantovana's (BAM) long-term IDR of 'A+' on negative watch and affirmed its short-term IDR and support ratings at 'F1' and '1', respectively.Fitch said it has removed ANTV's 'A+' long-term IDR and short-term IDR of 'F1' from positive watch and placed it on negative watch. The agency has also affirmed ANTV's individual and support ratings at 'B/C' and '1', respectively.Fitch added it has also affirmed Banco Santander's ratings at long-term IDR 'AA' with a stable outlook, short-term IDR 'F1+', individual 'A/B', support '1' and support rating floor 'A-'.Fitch stated it currently expects to downgrade MPS's long-term IDR by no more than one notch, unless it considers the bank's plans too aggressive.The agency said it could downgrade ANTV's long-term IDR by up to two notches, depending on Fitch's evaluation of the integration plan. After the transaction, ANTV's IDRs and support rating will reflect its ownership by MPS.Following the sale of ANTV, Fitch estimates Santander's operations in Latin America to be around 20 pct of total assets, which is only slightly higher than if ANTV were to have been consolidated into the group, the ratings agency said.TFN.newsdesk@thomson.comnpr/ssaCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Santander says considering acquisitions in medium-term 