Portugal: Moody’s upgrades Banco Comercial Português’ deposit ratings

Moody’s rating agency upgraded on Monday Portugal’s Banco Comercial Português (BCP) deposit and senior debt ratings.

The agency upgraded BCP’s deposit ratings from Ba3 to Ba1 and senior debt ratings from Ba3 to Ba2, according to a statement.

“The rating action reflects BCP’s improved credit profile, through a significant reduction of the stock of problematic assets and enhanced domestic profitability metrics from weak levels, as well as Moody’s expectation that the bank’s financial fundamentals will show some further gradual progress in 2019,” the statement added.

Last week rating agency DBRS improved BCP’s deposit rating to investment grade, which, according to the bank, “reflected the introduction in Portugal of full depositor preference in bank insolvency and resolution proceedings”.