Monte Paschi Rating Cut as Probe Digs Deeper Into Losses
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Banca Monte dei Paschi di Siena SpA, the Italian lender facing a criminal probe into money-losing structured deals, had its credit rating cut by Standard & Poor’s on concern the investigation may lead to bigger losses.
The losses “may be higher than initially anticipated” and demonstrate “a risk of management weaknesses,” S&P said in a statement late yesterday. The Siena-based lender had its long-term grade cut to BB from BB+ and remains on watch negative, which means the company may be downgraded again. Shares fell as much as 2.9 percent in Milan trading today.