Skip to content
Deacon Keith Fournier Hi reader, it seems you use Catholic Online a lot; that's great! It's a little awkward to ask, but we need your help. If you have already donated, we sincerely thank you. We're not salespeople, but we depend on donations averaging $14.76 and fewer than 1% of readers give. If you donate just $5.00, the price of your coffee, Catholic Online School could keep thriving. Thank you. Help Now >

Founded in 1472, world's oldest bank downgraded to junk status

Free World Class Education
FREE Catholic Classes

By Catholic Online (NEWS CONSORTIUM)
12/6/2012 (6 years ago)
Catholic Online (https://www.catholic.org)

Troubled Italian bank Monte dei Paschi di Siena get BBB- rating from S & P

Founded in 1472, the world's oldest bank has been downgraded to junk status by Standard & Poor. Troubled Italian bank Monte dei Paschi di Siena, founded in 1472, is the world's oldest surviving lender has been put down to speculative-grade status of BB+ from BBB-.

Banca Monte dei Paschi di Siena S.p.A. is the oldest surviving bank in the world and Italy's third largest bank.

Banca Monte dei Paschi di Siena S.p.A. is the oldest surviving bank in the world and Italy's third largest bank.

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (https://www.catholic.org)
12/6/2012 (6 years ago)

Published in Europe

Keywords: Italy, Standard & Poor, Monte dei Paschi di Siena, downgrade


LOS ANGELES, CA (Catholic Online) - S & P Standard cut its credit rating for the bank earlier this week and also placed the bank on negative outlook.

"Deteriorating trends in Banca Monte dei Paschi di Siena's financial position make it unlikely that the bank would restore profitability and improve its capital and funding position in line with our previous expectations.

"The difficult economic and operating environment we anticipate in the Italian market will compound the challenges for MPS to implement successfully its business plan," the agency said in a statement.

The bank's profitability could continue to be under pressure through 2013 despite its efforts to reduce costs.

It's said that there is a very real risk that the bank might not be able to proceed with its planned 1.0-billion-euro ($1.3-billion) capital increase in 2014.

Banca Monte dei Paschi di Siena S.p.A. is the oldest surviving bank in the world and Italy's third largest bank. Founded in 1472 by the Magistrate of the city state of Siena, Italy, as a mount of piety, it has been operating ever since. Today it consists of approximately 3,000 branches, 33,000 employees and 4.5 million customers in Italy, as well as branches and businesses abroad. A subsidiary, MPS Finance, handles investment banking.

In the wake of rising yields and declining valuations on Italian government debt in the European sovereign-debt crisis, MPS lost over $2 billion in the first half of 2012, had to recapitalize, and faced restructuring or worse. The majority owner until the recapitalization, the Fondazione Monte dei Paschi di Siena long resisted issuing new capital which would dilute its holding. In September 2012, even after the dilution, the bank "appear[ed] poised" also to give the national government a greater ownership stake in return for more capital.

---


'Help Give every Student and Teacher FREE resources for a world-class Moral Catholic Education'


Copyright 2019 - Distributed by THE CALIFORNIA NETWORK


Comments


More Europe

Vatican communications official: Carved figure at Amazon synod not Virgin Mary Watch

Image of Carved figure at Amazon synod

Fr. Giacomo Costa, a communications official for the Amazon synod, said Wednesday a wooden figure of a nude pregnant woman, which has been ... continue reading


Pope puts virtue and family at center of World Food Day message Watch

Image of Pope Francis

Pope Francis voiced his concerns about the world's approach to food, and called for a global attitude of virtue towards nutrition in his ... continue reading



UK court authorizes forced abortion for disabled woman in new case Watch

Image of

A court in the United Kingdom ruled last week that it is in the best interest of a pregnant woman with severe learning disabilities that ... continue reading


Polish bishops open beatification process for parents of St John Paul II Watch

Image of John Paul II's father, Karol Wojtyla, and mother, Emilia nee Kaczorowska

The Polish bishops' conference has agreed to begin the canonization process for the parents of Saint John Paul II. Krakow, Poland, (CNA) - ... continue reading


Disabled woman who narrowly avoided forced abortion to get forced contraception Watch

Image of Royal Courts of Justice London

A judge in England has decided that a disabled woman who is pregnant will be fitted with a contraceptive device immediately following her ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Catholic Online Logo

Copyright 2019 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2019 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.

Catholic Online is a Project of Your Catholic Voice Foundation, a Not-for-Profit Corporation. Your Catholic Voice Foundation has been granted a recognition of tax exemption under Section 501(c)(3) of the Internal Revenue Code. Federal Tax Identification Number: 81-0596847. Your gift is tax-deductible as allowed by law.