The European Central Bank yesterday named three temporary administrators, as well a three member vigilance commission, to take control of Italy´s 10th bank and replace its leadership, following the resignation of the majority of its board members. Even tough Pietro Modiano, one of the three temporary administrators declared that there was no merger on the horizon for the bank, they will likely try to find another bank in which they can integrate it.
Next 26 October S&P will revise its rating on Italy, currently BBB with stable Outlook. It could directly lower the rating one level to BBB-. While we wait for whether this happens or not, another agency, Fitch, has cut Banca Carige’s rating from B- to CCC+ believing that the bank will have difficulties in reinforcing its capital ratios.