Banco BPI SA (BPI), Portugal’s fifth- biggest bank, advanced the most in more than a week in Lisbon trading after Fitch Ratings raised the bank’s viability rating, citing the nation’s plan to shore up lenders.
The stock climbed as much as 3.5 percent to 53.8 euro cents, the most since July 10, and was up 3.1 percent to 53.6 cents as of 10:03 a.m. in the Portuguese capital.
“The rating increase may be supporting BPI shares today,” said Nuno Silva, a trader at Banco Popular in Lisbon.
Fitch raised BPI’s viability rating yesterday to bb- from cc. It also increased viability ratings for Portugal’s state- owned Caixa Geral de Depositos SA and Banco Comercial Portugues SA (BCP), citing the completion of the Portuguese government’s recapitalization program.
Banco Comercial shares increased 1 percent to 9.9 cents.
The three banks “are now better placed to weather expected future asset quality deterioration given the recessionary environment in Portugal,” Fitch said in a statement.
The Finance Ministry said in June that the state will inject more than 6.6 billion euros ($8.1 billion) into BCP, BPI and Caixa Geral to help the lenders meet capital requirements. Portuguese banks can use a 12 billion-euro recapitalization facility that’s part of the financial aid program.
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