Moody’s slightly raises ‘junk rating’ of Novo Banco

Moody’s has raised its credit rating for the debt of Novo Banco – the ‘good bank’ that rose from the toxicity of Banco Espírito Santo. But only by two notches – meaning the bank is still considered to have a junk rating. The new level – ‘speculative investment‘ – moves from the previous ‘high risk of default‘, and comes with what Lusa calls “a positive outlook”. The debt is still viewed in investment terms as ‘below investment grade‘, in spite of the billions of euros that have been used to bolster the bank.