...IDRs Reflect Standalone Profile: Banco Comercial Portugues S.A.'s (Millenium bcp) IDRs are aligned to its Viability Rating (VR). The ratings reflect the bank's weak asset-quality indicators, which have eroded its operating profitability and internal capital generation capacity. The ratings also factor in the good domestic franchise and improvements in the core business, and the adequate funding and liquidity profile. Weak but Improving Asset Quality: Millenium bcp reported a stable credit-at-risk ratio of 11.9% at end-3Q15 (53% covered) despite the 4% contraction of the loan book, reflecting lower inflows and recoveries of impaired loans and write-offs. Net problematic assets represented 8% of assets at end-1H15 (including exposure to real estate assets and loan recovery funds), and performing restructured loans a further 4.6%. Fitch expects the improving domestic economy to support asset quality further and help reduce loan impairment charges. Capital at Risk Still High: Millenium bcp's...
