Research Update: Italy's Veneto Banca SCRL On CreditWatch Negative On Bid For Banca Popolare di Intra SCPARL Sep 06
- ID: 1722743
- September 2006
- Region: Italy
- Standard & Poors
On Sept. 29, 2006, Standard & Poor's Ratings Services placed its 'BBB+' long-term and 'A-2' short-term counterparty credit ratings on Italian regional bank Veneto Banca SCRL on CreditWatch with negative implications. The CreditWatch placement follows Veneto Banca's proposed unconditional offer to acquire up to 75% of the shares of Banca Popolare di Intra SCPARL (BB/Watch Pos/B) at a price of €15, valuing Intra at €845 million (including full convertible bond conversion), a level exceeding three times its book value. An acquisition of Intra would substantially increase Veneto Banca's risk profile, and weaken its financial performance. The deterioration of capitalization will be mitigated by the substantial capital increases realized and projected by Veneto Banca to finance the proposed acquisition. The acquisition...
Companies mentioned in this report are:
- Veneto Banca SCPA
- Banca Popolare di Intra SCPA
Action: On CreditWatch:Negative
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases. SHOW LESS READ MORE >