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Carige: Moody’s cuts rating in response to ECB

Genoa - On the day of the meeting for the response to the ECB, which rejected the plan to conserve the bank’s assets in July, but also on the day of the likely approval of the start of exclusive negotiations for the sale of the first tranche of UTP, Carige received a rating cut from Moody’s

Genoa - On the day of the meeting for the response to the ECB, which rejected the plan to conserve the bank’s assets in July, but also on the day of the likely approval of the start of exclusive negotiations for the sale of the first tranche of UTP, Carige received a rating cut from Moody’s. The decision was motivated by Frankfurt’s stop to the plan and the tensions over governance following the resignations, including those of the president and vice-president, “an obstacle to an effective restructuring of the bank.”

The stock, which after yesterday’s exploits jumped by 9%, today fell by 1.05% to 0.0094. The meeting of the Board of Directors, which began this afternoon at 5 PM and seemed as though it would be quick, proved to be more complex, and the directors are still meeting even though it seems that the text to be sent to the ECB has already been approved.

The ECB asked for a new plan to renew the bank and ensure compliance with capital requirements, suggesting a merger and asking for clarity on governance. More than three hours of meeting between the remaining directors (but not all were present) to discuss the situation and release a document which should explain how far along the project is, starting with the transfer of UTPs up to the choice of the new president, who should be the “oldest”, therefore Remo Checconi, to lead the board until the 20 September meeting, which will mark the birth of the new board and the reckoning among shareholders.

Carige had already specified that it had begun the process of selling non-strategic assets, such as its 20% stake in the Bank of Italy and its 20% stake in Autostrada dei fiori. The issue of a 500 million subordinated bond also remains on the agenda. The operation was postponed months ago because the moment was not the most favourable, but it remains a current issue, even if CEO Paolo Fiorentino has already explained that the bank could reach its capital targets even if it were unable to carry off the bond issue.

In view of the extraordinary shareholders’ meeting, the convocation and reports from the two shareholders were also published today: the one in which Raffaele Mincione, owner of 5.428% of the bank, through Pop 12, proposes the revocation of the current board of directors “which can no longer be considered an expression of the current shareholding structure” and the election of a new board. And that of Malacalza Investimenti (20.629%), which asks for the same, but with different motivations linked to observations on governance and the rejection from the ECB.

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