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DBRS puts Monte dei Paschi ratings under review after stress tests

Published 28/10/2014, 21:17
DBRS puts Monte dei Paschi ratings under review after stress tests
BMPS
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MILAN (Reuters) - DBRS has placed the credit ratings of Banca Monte dei Paschi di Siena (MI:BMPS) under review with negative implications after results from a pan-European health check of lenders showed it had a capital shortfall of 2.1 billion euros (1.65 billion pounds).

Monte dei Paschi, Italy's third-largest bank, was left badly exposed by the European Central Bank's stress tests on 130 European banks, which set strict capital thresholds to ensure the solidity of the financial system.

DBRS said on Tuesday it was concerned "about the pressure on management to successfully execute a further capital raise following the 5 billion euro issue in June 2014".

The ratings agency said its action was limited to Monte dei Paschi, adding the results of the stress tests were generally in line with its expectations.

(Reporting by Agnieszka Flak)

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