“Following Moody’s decision of 18 November 2015 to put the Novo Banco ratings under review for downgrade, Moody’s decided on Monday to confirm the Baseline Credit Assessment’ (BCA) of Novo Banco in “caa2” and downgrade the ratings for deposits and long-term senior debt from B2 to Caa1 and the Counterparty Risk Assessment’ (CRA) from B1(cr) to B2(cr)”, said a communiqué the bank sent to the Portuguese Stock Market Regulator (CMVM).
The measure the Bank of Portugal took at the end of last year bolstered the capital of Novo Banco by €1.98 billion, enabling it to comply with regulatory demands.
Banco Espírito Santo (BES), as it used to be known, came to an end on 3 August 2014, days after presenting a historic half-yearly loss of €3.6 billion.