Fitch cuts Banca Carige viability

Fitch Ratings said it affirmed Banca Carige SpA’s CCC+ long-term issuer default rating and removed it from rating watch negative.

Carige's viability rating was downgraded to c from ccc+.

The agency said the action follows the announcement of a planned recapitalization of Carige by the voluntary arm of the Deposit Guarantee Scheme, which, in Fitch's view, reduces the downside risk for the bank's senior creditors, which had driven the rating watch.

The downgrade of the viability reflects that, under Fitch's criteria, the upcoming transaction is viewed as an extraordinary provision of support that is necessary to restore the bank's viability since it is in breach of its total capital requirement and need to ensure compliance by end-2018, as requested by the ECB.

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