Fitch raises Banco Montebio's rating and moves away from “junk” by two notches.

Banco Montebio informed the market that Fitch Ratings raised its long-term unsecured debt rating by two levels, to BB, bringing it closer to reaching investment grade. However, it is still two levels away from this classification.

“Financial rating agency Fitch (Fitch) has raised the risk rating of Banco Montebio's senior unsecured debt (senior preferred) from B+ to BB. “This is the second consecutive increase in the past twelve months, in a total of four levels,” the bank highlights. Led by Pedro Leitao.

“Given the current context of the institution's management model and the success achieved in all key profitability, capital and risk indicators, the financial rating agency gives the rating a stable outlook, reflecting expectations that the bank will maintain this performance,” Montebio reveals. .

As it rose, other long-term ratings were also revised. The long-term deposit rating rose from BB- to BB+.

The issuer's material rating (VR, Viability Rating) rose from b+ to bb.

The long-term rating (IDR, long-term issuer default rating) also moved from B+ to BB, with a stable outlook (Outlook Stable).

Non-preferred debt improved its rating from B to BB-.

Subordinated debt also moved from B- to B+.

According to Fitch, this action is supported by the success of the management measures implemented by Banco Montebio, which led to a significant and sustained reduction in risks on the balance sheet, specifically the reduction of non-production assets, for the benefit of its capital. The position has now been strengthened and at the appropriate levels.

“This decision is also due to the significant improvement in the structural profitability of Banco Montepio, following the completion of the operational adaptation plan, and the demonstrated ability to issue unsecured debt in international markets,” the bank highlights.