... S.A.'s (Millennium bcp) Long-Term Issuer Default Rating (IDR) is at its Support Rating Floor (SRF) and reflects Fitch Ratings' belief that there is a moderate probability of state support, if needed, due to its systemic importance. The Negative Outlook reflects a potential reduction of state support due to the EU's Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism (SRM). Still Some Weak Fundamentals: Millennium bcp's Viability Rating (VR) reflects worse than peers' performance and weak asset quality indicators. It also takes into account its good domestic franchise, progress in its restructuring plan, improving funding and liquidity and increased core capital. Weak Earnings: The bank has been reporting losses since 2011, mainly due to low interest rates and declining volumes, the subdued domestic economy and high cost of CoCos. However, Fitch expects the bank's core profitability to improve in 2015, benefiting...
