S&P lowers Banco Popolare

Standard & Poor's said it lowered the long- and short-term counterparty credit ratings on Banco Popolare Societa Cooperativa SCRL and its core subsidiaries Banca Aletti & C. SpA and Credito Bergamasco to BB+/B from BBB-/A-3.

The outlook is negative.

S&P also said it lowered Banco Popolare's tier 1 preferred securities to CCC+ from B- and those on its non-deferrable subordinated debt securities to B+ from BB-.

Banco Popolare appears increasingly vulnerable to higher-than-anticipated credit losses stemming from its mounting non-performing assets for which it has a moderate level of reserve coverage, the agency said, and the challenging economic environment in Italy.

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