Egan Jones Just Downgraded Italy's Most Troubled Banks To BB+

Tyler Durden's picture

Q. What is the last thing that panic driven market plunges need? A: The Truth, this time brough to you by the only credible rating agency: Egan-Jones.


  • Banca Monte dei Paschi: EJR lowered BBB to BB+ (S&P: A-) (BMPS IM)
  • Intesa Sanpaolo SpA: EJR lowered BBB- to BB+ (S&P: A+) (ISP IM)


On Intesa Sanpaolo:

Synopsis: Asset quality has improved but is still a problem. NPLs for the March quarter were 9.44% of total loans with reserve coverage of 51.9% (Year end December '10 NPLs were 9.36% of loans with 49.9% coverage). Capital is somewhat adequate with a capital/assets ratio of 8.6% of assets, however when unreserved NPLs are taken into account, equity is diluted to 5.82% of assets (December year end capital/assets was 8.31%, 5.47% with equity dilution). Greek sovereign exposure is stated at EUR 1.1B. We are downgrading to " BB+ " due to Italian sovereign concerns.

On Banca Monte dei Pasci, which is the oldest surviving bank in the world (h/t London Dude Trader)

Synopsis: Asset quality and capital are major concerns. Non-performing loans as of the March quarter were 5.44% of loans, up from 4.9% last year. Reserve coverage of 46% needs improvement. While POP holds " guarantees and mortgages " the value we believe is elusive and therefore applied only 30% of the guarantee to the reserves. Adding the additional EUR1.1B to reserves, coverage increases to 58% of NPLs. POP's 6.7% capital to assets ratio is diluted to 4.7% including the reserve shortfall. Real estate loans are relatively high at 50% of loans. POP has EUR14B in Spanish govt. bonds. We are downgrading to " BB+ " based on sovereign concerns.

We don't expect Banca Monte dei Pasci to be the longest surviving bank for much longer.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mr Lennon Hendrix's picture

Snake, meet tail.

Sorry, I meant:

Italy, eat gelato.

Cognitive Dissonance's picture


I can't keep up with your avatar changes. I don't see IDs, I see pictures when I scan ZH. Let my brain settle on one LH ID and one picture for a week (please?) before changing again. :>)

mason5566's picture

If you own a motorcycle, you must have experience of buying motorcycle parts. Motorcycle is mechanical beast and its parts can get damaged afterHonda CBR 1000 RR fairings 2004 long usage, or because of some accident. So need to buy used Honda CBR 1000 RR fairings 2005 motorcycles parts arise often; however it is really a Honda CBR 1000 RR fairings 2006 challenging job to buy second hand motorcycle parts. When it comes in mind to get your Honda CBR 1000 RR fairings 2007 bike repaired, in the mean time the thought of cost associated with the repairing process also strikes in mind. The best solution to solve this Honda CBR 1000 RR fairings 2008 problem is to buy motorcycle used parts that are available at low rates.However before buying motorcycles used Honda CBR 600 fairings parts, do proper research in order to know from where you can get the best Honda CBR600 fairings bike spare parts. There are various online used motorcycle parts stores that can prove a great help in buying second hand Honda CBR600 F2 fairings motorcycle parts. Before buying the used motorcycle Honda CBR600 F3 fairings make sure to inspect it, rather it is in your best interest to take the Honda CBR600 F4 fairings advice of a motorcycle Honda CBR600 F4i fairings mechanic. So that you can be safe, from post purchase problems that can arise at later2003 Honda CBR 600 RR Fairings stages.Some people think that used motorcycles parts are of not high quality, but this is a wrong concept. All the spare 2004 Honda CBR 600 RR Fairings bike parts are not of low quality as they have been taken from the 2005 Honda CBR 600 RR Fairings bikes that are damaged in accident and the parts were still functional. There is huge salvage yards that buys the 2006 Honda CBR 600 RR Fairings bikes and provides you the motorcycle used 2007 Honda CBR 600 RR Fairings parts.There is no doubt that when you need to get your 2008 Honda CBR 600 RR Fairings motorbike repaired, you have to face the 2009 Honda CBR 600 RR Fairings problem that some of the Honda CBR 1100 XX Blackbird fairings bike parts your mechanic has asked you to buy are not available in the market. It is because it happens that the Honda CBR 250 RR fairings company that manufactured your bike might have stopped operating after few years. This is really very depressing Honda CBR250RR fairings situation but in this case have an option to explore second hand motorcycle Suzuki GSXR 600 fairings parts market. You can easily get the used bike parts that you are looking for Suzuki GSXR600 fairings that are in good condition.It is obvious that most people prefer used Suzuki GSXR 600 K1 fairings motorcycle parts over new Suzuki GSXR 750 K1 fairings bike parts; the reason is very simple the spare bike parts are available at low rates and they are in fully 2005 Suzuki GSXR 750 K4 fairings functional condition. There is huge price difference in the new and used 2007 Suzuki GSXR 750 K6 fairings bike parts. Especially if your motor bike is old enough then it will be beneficial for you to buy 2009 Suzuki GSXR 750 K8 fairings used parts as the other bike parts are also old Suzuki GSXR750 fairings , so it is not worthwhile to spend more money to buy new motorcycle parts.There is another reason why to buy motorcycle used 2004 Suzuki GSXR 1000 K3 fairings parts, with the passage of time your motorcycles' value is depreciated and obviously its resale value has been decreased too. So it is wise decision to buy Suzuki GSX 600F Katana fairings motorcycles used parts instead of fresher bike parts.

TruthInSunshine's picture

Porca miseria.



lilmac929's picture

Man...Tyler's busy today!  So much good news and so little time.

firstdivision's picture

So that explains the rally in the US markets.  It has nothing to do with the PPT and a certain Brian Sack...

Cognitive Dissonance's picture

Better late than never.

Though they should have been downgraded all the way to SHIT. Maybe tomorrow.

Ghordius's picture

I expect they will be breaked down/back to national banks, soon. Those Austrian aquisitions are a serious problem...

jm's picture

A real problem spot is that Banca Monte dei Pasci's funding is all short-term and their liquidity pool is drying up. 

bania's picture


johngaltfla's picture

I don't know about that comment Tyler...Dagong is looking more credible by the day.

Hedgetard55's picture

DOW 12,000 we hardley knew ye.

Break out the DOW 10k hats, bitchez.

Bolweevil's picture

Russia's next.

viva Rossi! viva la figa!

chinawholesaler's picture

China Wholesale
Wholesale Tag

Manicure Set
Safety Products
Wholesale Mirror

Wholesale Pen
Wholesale Whistle
China Wholesale

Audio Video Equipment
Wholesale Memory Card
Poncho Raincoat

Reflective Safety Vest
Gift Box
Tape Measure

Wholesale Golf Products
Book Light
Wholesale Bedding

Patient Care Products
Wholesale Calculator
Wholesale Pin

Wholesale Puzzle
Silicone Products
Wholesale Massager

Wholesale Swimming Products
Men Beauty Care
Book Light

Pen Holder
Outdoor Leisure Products
Coin Bank

Recorder Pen
Wholesale Flag
Wine Set

Wholesale Ruler
Wholesale Sticker
Wholesale Halloween Gift

Wholesale Lighter
Wholesale Scarf
Wholesale Lanyard

Wholesale Glass
Wholesale Thermometer
Wholesale Vuvuzela

Home Appliances
Wholesale Lighter
Wholesale Jewelry

Heating Products