Rating action follows Italian government outlook change on 7 December 2016
London, 09 December 2016 -- Moody's Investors Service has today changed the outlook to negative from
stable and affirmed the ratings of seven financial institutions,
prompted by the outlook change to negative from stable on the Italian
government's Baa2 debt rating. For further information on the sovereign
rating action, please refer to Moody's press release dated 7 December
2016. (Moody's changes outlook on Italy's Baa2 issuer rating to
negative; affirms rating; https://www.moodys.com/research/--PR_358690).
The following banks are affected by today's rating actions: Intesa
Sanpaolo Spa, Banca IMI Spa, FCA Bank S.p.A.,
Banca Nazionale Del Lavoro S.P.A., Credito
Emiliano SpA, Credit Agricole Cariparma S.p.A.,
and Cassa Depositi e Prestiti S.p.A.
The full list of the affected ratings can be found at the end of this
press release.
RATINGS RATIONALE
-- NEGATIVE OUTLOOK DRIVEN BY CHANGE OF OUTLOOK ON GOVERNMENT
DEBT RATING
Moody's rating affirmation with a negative outlook on the A3 long-term
deposit ratings of Intesa Sanpaolo Spa, Banca IMI Spa, FCA
Bank S.p.A., Banca Nazionale Del Lavoro S.P.A.
and Credito Emiliano SpA were driven by the affirmation with a negative
outlook of the Italian government's Baa2 debt rating. At the same
time, Moody's has affirmed the A3 long term debt and deposit
ratings of Credit Agricole Cariparma S.p.A. and changed
the outlook to negative.
The rating affirmation reflects Moody's assessment that the "Moderate+"
Macro Profile assigned to Italy, and the financial profiles of these
banks, have not materially changed.
However, in accordance with Moody's bank methodology,
debt and deposit ratings are typically constrained to two notches above
the sovereign bond rating, reflecting the agency's view that
the expected loss of rated bank instruments is unlikely to be significantly
below that of the sovereign's own debt. This means that,
in the event of a downgrade of the rating of the Italian government,
Italian bank debt and deposit ratings currently positioned at A3 would
also likely be downgraded, and the outlook on these instruments
is therefore aligned with that on Italian government debt.
Moody's rating affirmation with a negative outlook of Cassa Depositi
e Prestiti's (CDP) Baa2 long-term issuer and senior unsecured ratings
was also driven by the affirmation with a negative outlook of the Italian
government's debt rating. CDP's Baa2 rating and negative outlook
reflect the combination of: (1) the Italian government bond rating
of Baa2 negative; and (2) strong dependence on and very high support
from the Italian government.
-- WHAT COULD MOVE THE RATINGS UP/DOWN
Moody's considers that there is limited upward pressure on the affected
ratings at present, as indicated by the negative outlooks.
However, over the medium term, a return to a stable outlook
on the Italian government debt rating could lead Moody's to change
the outlooks on the affected bank ratings to stable.
Conversely, Moody's could downgrade the ratings following
a downgrade of Italy's sovereign ratings and/or a deterioration of the
affected banks' baseline credit assessments, driven for example
by a general deterioration in the operating environment or specific instances
of worsening asset quality, losses, or reduced capitalisation.
LIST OF AFFECTED RATINGS
Issuer: Intesa Sanpaolo Spa
..Affirmations:
....Long-term Counterparty Risk Assessment,
affirmed Baa1(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Deposit Ratings,
affirmed A3, outlook changed to Negative from Stable
....Short-term Deposit Ratings,
affirmed P-2
....Long-term Issuer Rating,
affirmed Baa1 Stable
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa1 Stable
....Backed Senior Unsecured Regular Bond/Debenture,
affirmed Baa1 Stable
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Baa1
....Backed Senior Unsecured Medium-Term
Note Program, affirmed (P)Baa1
....Subordinate Regular Bond/Debenture,
affirmed Ba1
....Subordinate Medium-Term Note Program,
affirmed (P)Ba1
....Junior Subordinated Regular Bond/Debenture,
affirmed Ba2(hyb)
....Pref. Stock Non-cumulative
Medium-Term Note Program, affirmed (P)Ba3
....Pref. Stock Non-cumulative,
affirmed Ba3(hyb)
....Other Short Term, affirmed (P)P-2
....Adjusted Baseline Credit Assessment,
affirmed baa3
....Baseline Credit Assessment, affirmed
baa3
..Outlook Action:
....Outlook changed to Negative(m) from Stable
Issuer: Banca IMI Spa
..Affirmations:
....Long-term Counterparty Risk Assessment,
affirmed Baa1(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Deposit Ratings,
affirmed A3, outlook changed to Negative from Stable
....Short-term Deposit Ratings,
affirmed P-2
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa1 Stable
....Adjusted Baseline Credit Assessment,
affirmed baa3
....Baseline Credit Assessment, affirmed
baa3
..Outlook Action:
....Outlook changed to Negative(m) from Stable
Issuer: Intesa Sanpaolo Spa, NY Branch
..Affirmations:
....Long-term Counterparty Risk Assessment,
affirmed Baa1(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Deposit Rating,
affirmed A3, outlook changed to Negative from Stable
....Short-term Deposit Rating,
affirmed P-2
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: Credito Emiliano SpA
..Affirmations:
....Long-term Counterparty Risk Assessment,
affirmed Baa1(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Deposit Ratings,
affirmed A3, outlook changed to Negative from Stable
....Short-term Deposit Ratings,
affirmed P-2
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Baa3
....Subordinate Regular Bond/Debenture (Local
Currency) , Affirmed Ba1
....Subordinate Medium-Term Note Program,
affirmed (P)Ba1
....Adjusted Baseline Credit Assessment,
affirmed baa3
....Baseline Credit Assessment, affirmed
baa3
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: Credit Agricole Cariparma S.p.A.
..Affirmations:
....Long-term Counterparty Risk Assessment,
affirmed Baa1(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Deposit Ratings,
affirmed A3, outlook changed to Negative from Stable
....Short-term Deposit Ratings,
affirmed P-2
....Senior Unsecured Regular Bond/Debenture,
affirmed A3, outlook changed to Negative from Stable
....Adjusted Baseline Credit Assessment,
affirmed baa2
....Baseline Credit Assessment, affirmed
ba1
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: FCA Bank S.p.A.
..Affirmations:
....Long-term Counterparty Risk Assessment,
affirmed Baa1(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Deposit Ratings,
affirmed A3, outlook changed to Negative from Stable
....Short-term Deposit Ratings,
affirmed P-2
....Long-term Issuer Rating,
affirmed Baa1 Stable
....Adjusted Baseline Credit Assessment,
Affirmed baa3
....Baseline Credit Assessment, Affirmed
ba2
..Outlook Action:
....Outlook changed to Negative(m) from Stable
Issuer: Banca Nazionale Del Lavoro S.P.A.
..Affirmations:
....Long-term Counterparty Risk Assessment,
affirmed Baa1(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-Term Deposit Ratings,
affirmed A3, outlook changed to Negative from Stable
....Short-term Deposit Ratings,
affirmed P-2
....Long-term Issuer Rating,
affirmed Baa2 Stable
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa2 Stable
....Adjusted Baseline Credit Assessment,
affirmed baa2
....Baseline Credit Assessment, affirmed
ba2
..Outlook Action:
....Outlook changed to Negative(m) from Stable
Issuer: Cassa Depositi e Prestiti S.p.A.
..Affirmations:
....Long-term Issuer Rating,
affirmed Baa2, outlook changed to Negative from Stable
....Short-term Issuer Rating,
affirmed P-2
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa2, outlook changed to Negative from Stable
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Baa2
....Commercial Paper, affirmed P-2
..Outlook Action:
....Outlook changed to Negative from Stable
PRINCIPAL METHODOLOGIES
The principal methodology used in rating Intesa Sanpaolo Spa, Banca
IMI Spa, Intesa Sanpaolo Spa, NY Branch, Credito Emiliano
SpA, Credit Agricole Cariparma S.p.A.,
FCA Bank S.p.A. and Banca Nazionale Del Lavoro S.P.A.
was Banks published in January 2016. The principal methodology
used in rating Cassa Depositi e Prestiti S.p.A. was
Government-Related Issuers published in October 2014. Please
see the Rating Methodologies page on www.moodys.com for
a copy of these methodologies.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead analyst and the Moody's legal entity that has issued the ratings.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Carlo Gori
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Nicholas Hill
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
