Moody's Investors Service (Moody's) today extended its review for upgrade on the long-term ratings of Banca Monte dei Paschi di Siena S.p.A. (MPS) and its fully-owned subsidiary MPS Capital Services S.p.A., initiated on 21 July 2020. MPS's B1 long-term local and foreign-currency bank deposit ratings, Caa1 long-term senior unsecured rating, and b3 Baseline Credit Assessment (BCA) remain on review for upgrade.
Jean Pierre Mustier's decision to step down as CEO of UniCredit had nothing to do with a possible acquisition of bailed-out rival Monte dei Paschi (MPS), UniCredit Chairman-elect Pier Carlo Padoan was quoted as saying on Sunday. In an interview with Italy's Corriere della Sera daily, Padoan denied Mustier's exit facilitates a merger with MPS, after speculation about a deal hurt UniCredit shares last week. UniCredit had been in talks with the Treasury over MPS, which Rome is trying to re-privatise, sources had said.
Tax breaks promoted by Italy's Treasury to spur bank mergers and lure a potential buyer for state-backed Monte dei Paschi di Siena are triggering mounting opposition in the ruling coalition, lawmakers said. The scheme, due to be approved by parliament by the end of the year as part of the 2021 budget, allows banks merging next year to lower their tax burden by turning so-called deferred tax assets (DTAs), worth billions of euros, into tax credits.