MPS may be junked as Fitch removes sovereign support

On Tuesday evening Fitch downgraded a swathe of European bank ratings, as it no longer gives any benefit to systemic state support. The downgrades were not expected to have much impact on covered bonds, but a few programmes may be hit. The most extreme case is likely to be Banca Monte dei Paschi di Siena (BMPS), whose July 2024s widened 50p.