Virus-related shock drives negative outlooks and reviews for downgrade
Paris, March 26, 2020 -- Moody's Investors Service today took rating actions on 15 Italian banks.
The outlooks on the long-term deposit ratings of four Italian banks
and on the senior unsecured debt ratings for five Italian banking groups
were changed to negative from stable. The outlook on one Italian
banking group was changed to developing from positive. The rating
agency placed on review for downgrade or direction uncertain some of the
ratings and / or assessments of another four Italian banks (see details
below) and affirmed with stable outlook the ratings of one Italian bank.
Today's rating actions reflect the deteriorating operating environment
from the coronavirus outbreak in Italy and the associated downside risks
to Italian banks' standalone credit profiles. The Baseline
Credit Assessments (BCAs) of most Italian banks are particularly exposed
to:
- Worsening asset quality: despite the large support package
put in place by the Italian government as well as the supervisory measures
decided by the European Central Bank, the rating agency expects
a material increase in problem loans and the cost of risk as companies
and individuals struggle to deal with their sudden change in economic
circumstances;
- Deteriorating capitalization: capital ratios are likely
to decline given wider spreads on Italian government bonds together with
an increase of risk-weighted assets (RWAs) as companies draw down
loans and their probability of default increases; and
- Tighter funding: high volatility will make access to market
funding difficult even though measures taken by the ECB ensure ample liquidity
for now (ECB measures will provide limited economic offset to coronavirus
weakness; https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1218558).
Moody's has identified two principal groups within its coverage
of Italian banks:
(1) those banks whose Baseline Credit Assessments will very likely be
affected by an expected deterioration in the operating environment and
associated rising problem loans, declining capital and falling profitability.
The BCAs and some ratings of these banks have been placed on review for
downgrade or review uncertain; and
(2) those banks whose BCAs could be affected by the expected deterioration
in the operating environment. The agency has affirmed the BCAs
and ratings of these banks but changed a number of outlooks to negative
or developing.
The ratings of a small number of other banks were unaffected or affirmed
with stable outlooks, as idiosyncratic reasons continue to outweigh
the systematic downward pressure for the moment.
RATING ACTIONS OVERVIEW
REVIEWS
- Banca Sella Holding S.p.A.: all ratings
and assessments were placed on review for downgrade.
- Cassa Centrale Raiffeisen S.p.A.:
the BCA and Adjusted BCA of baa3 alongside its issuer and senior unsecured
ratings at Baa2 were placed on review for downgrade. All other
ratings and assessments, currently constrained by the rating on
the Italian government, were affirmed; the outlook on the long-term
deposit ratings remains stable.
- Credit Agricole Italia S.p.A.: the
BCA and Adjusted BCA (ba1 and baa1 respectively) were placed on review
for downgrade. All other ratings and assessments, currently
constrained by the rating on the Italian government, were affirmed;
the outlook on the long-term deposit ratings remains stable.
- Cassa Centrale Banca S.p.A. (CCB):
the BCA and Adjusted BCA of ba1 alongside its long-term issuer
ratings of Ba1 were placed on review for downgrade. The direction
of the review on bank's deposit ratings and assessments was changed
to uncertain. The review uncertain reflects the rapidly deteriorating
macroeconomic environment in Italy which could be potentially mitigated
by CCB's larger deposit base on a group consolidated basis (see
"Moody's downgrades Cassa Centrale Banca's issuer rating to Ba1
from Baa3; deposit ratings on review for upgrade", 9
October 2019; https://www.moodys.com/research/--PR_410817).
CHANGES IN OUTLOOKS
- Intesa Sanpaolo S.p.A. (Intesa Sanpaolo):
the outlooks on the bank's and Banca IMI S.p.A.'s
long-term senior unsecured debt ratings were revised to negative
from stable. The outlook on both the bank's and Banca IMI's
long-term deposit ratings remain stable, while the banks'
deposit and senior debt ratings of Baa1 and their BCAs of baa3 were affirmed.
The actions reflect likely downward pressure on the bank's BCA and
the potential for a reversal of its previously improving trend in asset
quality. The outlook remains stable on the bank's long-term
deposit ratings because these ratings are currently capped by Italy's
government bond rating of Baa3 and therefore unlikely to be downgraded
in the event of a lower BCA.
- Mediocredito Trentino-Alto Adige S.p.A.:
the outlooks on the long-term deposit rating of Baa3 and senior
unsecured debt ratings of Ba1 were changed to negative from stable.
All assessments and ratings were affirmed.
- Credito Valtellinese S.p.A.: the outlook
on the senior unsecured debt rating of B2 was changed to negative from
stable. All assessments and ratings were affirmed.
- Banco BPM S.p.A.: the outlook on the
long-term deposit ratings was changed to negative from stable.
The bank's BCA of ba3, deposit ratings of Baa3/Prime-3
and issuer and senior unsecured ratings of Ba2 were affirmed.
- BPER Banca S.p.A.: the outlooks on
the long-term deposit, issuer and senior unsecured ratings
were changed to negative from stable. The bank's BCA of ba2,
deposit ratings of Baa3/Prime-3 and issuer and senior unsecured
ratings of Ba3 were affirmed.
- Credito Emiliano S.p.A.: the outlook
on the long-term deposit rating was changed to negative from stable.
The bank's BCA of baa3 and deposit ratings of Baa3/Prime-3
were affirmed.
- Banca Monte dei Paschi di Siena S.p.A. (MPS):
the outlooks on the long-term deposit and senior unsecured ratings
were changed to developing from positive, reflecting both downside
risks and upward pressure on the ratings. The outlooks on the deposit
ratings of the bank's subsidiary MPS Capital Services S.p.A.
were also changed to developing from positive. The bank's
BCA of b3, deposit ratings of B1/Not Prime and senior unsecured
rating of Caa1 were affirmed.
- Mediobanca S.p.A.: The outlooks on
the issuer and senior unsecured ratings were changed to negative from
stable. The outlook on the long-term deposit ratings remains
stable because these ratings are currently capped by Italy's government
bond rating of Baa3 and therefore unlikely to be downgraded in the event
of a lower BCA. The bank's BCA of baa3, deposit ratings
of Baa1/Prime-2 issuer and senior unsecured ratings of Baa1 were
affirmed.
RATINGS AFFIRMATION WITH A STABLE OUTLOOK
- UniCredit S.p.A. (UniCredit): the
bank's deposits of Baa1/Prime-2 and senior unsecured debt
ratings of Baa1were affirmed, as was its BCA of baa3. The
outlook on the long-term deposit and senior unsecured debt ratings
remains stable.
Although UniCredit's BCA of baa3 benefits from the bank's
pan-European footprint with strong presence in Germany, Austria
and CEE countries, the BCA could still be affected by a deterioration
in the operating environment. However, the outlooks on the
long-term deposit and senior unsecured ratings remain stable because
these ratings are currently capped by Italy's government bond rating
of Baa3 and therefore unlikely to be downgraded in the event of a lower
BCA.
BANKS NOT AFFECTED BY TODAY'S RATING ACTION
The ratings and assessments of Banca Carige S.p.A.,
Unione di Banche Italiane S.p.A, Banca Nazionale Del
Lavoro S.p.A., Banca Farmafactoring S.p.A.
and Banca del Mezzogiorno -- MCC S.p.A (Banca del Mezzogiorno)
are not affected by today's rating actions. For Banca del
Mezzogiorno: the review for downgrade on the bank's deposit
and senior unsecured debt ratings (Baa3/Prime-3 and Ba1 respectively)
was extended. The review initiated on 31 December 2019 followed
the announcement by the Italian government that the bank would be involved
in the rescue of the troubled Banca Popolare di Bari S.p.A.
(see "Moody's places Banca del Mezzogiorno's long term ratings under
review for downgrade"; https://www.moodys.com/research/--PR_415723).
A full list of affected ratings can be found at the end of this press
release.
RATINGS RATIONALE
The global spread of the coronavirus will result in simultaneous supply
and demand shocks. As of 24 March, Italy had put in place
sweeping and stringent measures designed to stem the spread of coronavirus.
These measures are highly disruptive to economic activity.
The negative outlooks assigned to the aforementioned ratings and assessments
reflect the pressure on these banks' intrinsic financial strength
(or BCAs) given this deteriorating environment.
Moody's has placed on review for downgrade the ratings and/or assessments
of banks that the agency views as more vulnerable to a deterioration of
their credit profiles, which could be revealed in the short term.
This additional vulnerability could be driven by one or more of a number
of factors, including the composition of their loan portfolios (greater
exposure to more vulnerable sectors such as tourism, retail,
and SMEs more generally), reduced likelihood of problem loan disposals,
a weaker starting point in terms of capital or profitability, or
more limited diversification.
ASSET QUALITY AND PROFITABILITY WILL WORSEN
The very rapid spread of the coronavirus outbreak has led Italy to enforce
widespread limitations on movement which will have a material impact on
the country's economy, affecting both corporate and individuals,
with more acute consequences for the important SME sector.
Moody's therefore expects Italian banks' asset quality and
profitability to weaken due to higher problem loans, even though
the duration of the disruption and its implications for the overall economy
and the Italian banking system are dependent upon the spread of the virus,
which remains difficult to predict. Some anticipated problem loan
disposals will likely be delayed or cancelled.
To some extent, the economic consequences will be mitigated by government
action. On 17 March 2020, the Italian government approved
a package ("Decreto Cura Italia"), which could be amended
via the legislative process, including support for individuals,
SMEs and self-employed. The new package includes specific
measures for the banking system, including a six-month bank
loan moratoria for companies under specific conditions and the introduction
of state guarantees on part of the loan losses that could be faced by
banks during this period.
In Moody's view these measures, in particular the introduction
of a state guarantee mechanism, are unlikely to fully shield the
Italian economy and banks from all the negative consequences of an unprecedented
turmoil and are more limited in scope than those in some other large European
countries.
Moody's also expects that banks' profitability will further
suffer due to the combination of lower revenues and increased credit costs.
BANKS' CAPITAL WILL BE AFFECTED
Italian banks' capital ratios will be affected by rising spreads
on sovereign yields, despite the supporting measures taken by the
ECB, which will weigh on the value of their government securities
and hence their equity, depending on how these assets are accounted.
Italian banks' exposure to the Italian government totaled €385
billion as of end-February 2020, equivalent to 10%
of the system's total assets.
The Italian 10-year sovereign bond spread relative to the German
10-year bond increased to over 280 basis points (bps) on 18 March
from below 130 bps before the coronavirus outbreak, and then decreased
to around 190 bps on 20 March, showing a high degree of volatility.
Capital ratios may also be diluted by a deterioration in the quality of
bank's loans, which could prompt an increase in RWAs.
WHOLESALE FUNDING IS MORE CONSTRAINED
The negative outlook on Italian banks' debt and deposit ratings
also reflects Moody's view that current market conditions will constrain
banks wholesale funding plans.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS
We regard the coronavirus outbreak as a social risk under our ESG framework,
given the substantial implications for public health and safety.
Moody's does not apply any corporate behavior adjustment to Italian banks
part of today's rating action except for MPS, and does not
have any specific concerns about their corporate governance, which
is nevertheless a key credit consideration, as for most banks.
MPS's BCA of b3 incorporates one-notch negative adjustment for
corporate behavior to reflect the continued uncertainty over the bank's
strategy going forward. Corporate governance is a key credit consideration
for MPS, as weak governance in the past had led to poor strategic
decisions.
WHAT COULD MOVE THE RATINGS UP/DOWN
The ratings of Cassa Centrale Banca S.p.A. could
be upgraded should the group's deposit base be sufficiently large
to reduce loss-given-failure for this instrument.
For other banks, upgrades in deposit and senior unsecured debt ratings
are unlikely given the current negative outlooks or reviews for downgrade.
A downgrade in ratings would likely be driven by a lower BCA. A
BCA downgrade could be driven by an expectation of a material deterioration
in the operating environment for banks in Italy, leading to a worsening
of banks' asset quality and profitability and reduced loss-absorption
capacity. A downgrade of banks' BCAs could also be triggered
by significantly reduced capitalization or a material deterioration in
liquidity if measures approved by the ECB were not sufficient to preserve
their liquidity and funding positions.
The developing outlook on MPS's ratings reflects both the downside
risks common to other Italian banks from the coronavirus outbreak described
below, and also the upward potential from the disposal of problem
loans which the bank is negotiating and which would materially improve
its financial profile.
A downgrade of Italy's sovereign rating would also lead to a downgrade
of banks' ratings capped by the sovereign rating.
Changes to the banks' liability structures could also have an impact
of the banks' ratings.
LIST OF AFFECTED RATINGS
Issuer: Banca Monte dei Paschi di Siena S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Ba3
....Short-term Counterparty Risk Ratings,
affirmed NP
....Long-term Bank Deposits,
affirmed B1, outlook changed to Developing from Positive
....Short-term Bank Deposits,
affirmed NP
....Long-term Counterparty Risk Assessment,
affirmed Ba3(cr)
....Short-term Counterparty Risk Assessment,
affirmed NP(cr)
....Baseline Credit Assessment, affirmed
b3
....Adjusted Baseline Credit Assessment,
affirmed b3
....Senior Unsecured Regular Bond/Debenture,
affirmed Caa1, outlook changed to Developing from Positive
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Caa1
....Subordinate Regular Bond/Debenture,
affirmed Caa1
....Subordinate Medium-Term Note Program,
affirmed (P)Caa1
....Other Short Term affirmed (P)NP
..Outlook Action:
....Outlook changed to Developing from Positive
Issuer: Banca Italease S.p.A.
..Affirmations:
....Senior Unsecured Regular Bond/Debenture,
affirmed Ba2, outlook remains Negative
..No Outlook assigned
Issuer: Banco Popolare Societa Cooperativa
..Affirmations:
....Senior Unsecured Regular Bond/Debenture,
affirmed Ba2, outlook remains Negative
....Subordinate Regular Bond/Debenture,
affirmed B1
....Preferred Stock Non-cumulative,
affirmed B3(hyb)
..No Outlook assigned
Issuer: BPER Banca S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa2
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposit Ratings,
affirmed Baa3, outlook changed to Negative from Stable
....Short-term Bank Deposit,
affirmed P-3
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Issuer Rating,
affirmed Ba3, outlook changed to Negative from Stable
....Baseline Credit Assessment, affirmed
ba2
....Adjusted Baseline Credit Assessment,
affirmed ba2
....Senior Unsecured Regular Bond/Debenture,
affirmed Ba3, outlook changed to Negative from Stable
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Ba3
....Subordinate Regular Bond/Debenture,
affirmed Ba3
....Subordinate Medium-Term Note Program,
affirmed (P)Ba3
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: Mediobanca S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa1, outlook remains Stable
....Short-term Bank Deposits,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Issuer Ratings,
affirmed Baa1, outlook changed to Negative from Stable
....Baseline Credit Assessment, affirmed
baa3
....Adjusted Baseline Credit Assessment,
affirmed baa3
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook changed to Negative from Stable
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Baa1
....Junior Senior Unsecured Regular Bond/Debenture,
affirmed Baa3
....Junior Senior Unsecured Medium-Term
Note Program, affirmed (P)Baa3
....Subordinate Medium-Term Note Program,
affirmed (P)Ba1
....Other Short Term, affirmed (P)P-2
..Outlook Action:
....Outlook changed to Stable(m) from Stable
Issuer: Mediobanca International (Luxembourg) SA
..Affirmations:
....Backed Commercial Paper, affirmed
P-2
....Backed Other Short Term, affirmed
(P)P-2
....Backed Senior Unsecured Medium-Term
Note Program, affirmed (P)Baa1
....Backed Senior Unsecured Regular Bond/Debenture
, affirmed Baa1, Negative outlook assigned
..Outlook Action:
....Outlook changed to Negative from No Outlook
Issuer: MPS Capital Services S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Ba3
....Short-term Counterparty Risk Ratings,
affirmed NP
....Long-term Bank Deposits,
affirmed B1, outlook changed to Developing from Positive
....Short-term Bank Deposits,
affirmed NP
....Long-term Counterparty Risk Assessment,
affirmed Ba3(cr)
....Short-term Counterparty Risk Assessment,
affirmed NP(cr)
....Baseline Credit Assessment, affirmed
b3
....Adjusted Baseline Credit Assessment,
affirmed b3
..Outlook Action:
....Outlook changed to Developing from Positive
Issuer: Credito Emiliano S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa3, outlook changed to Negative from Stable
....Short-term Bank Deposits,
affirmed P-3
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Baseline Credit Assessment, affirmed
baa3
....Adjusted Baseline Credit Assessment,
affirmed baa3
....Junior Senior Unsecured Regular Bond/Debenture,
affirmed Ba1
....Subordinate Regular Bond/Debenture,
affirmed Ba1
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: Banco BPM S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa3
....Short-term Counterparty Risk Ratings,
affirmed P-3
....Long-term Bank Deposits,
affirmed Baa3, outlook changed to Negative from Stable
....Short-term Deposit Rating,
affirmed P-3
....Long-term Counterparty Risk Assessment,
affirmed Baa3(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-3(cr)
....Long-term Issuer Rating,
affirmed Ba2, outlook remains Negative
....Baseline Credit Assessment, affirmed
ba3
....Adjusted Baseline Credit Assessment,
affirmed ba3
....Senior Unsecured Regular Bond/Debenture,
affirmed Ba2, outlook remains Negative
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Ba2
....Junior Senior Unsecured Regular Bond/Debenture,
affirmed B1
....Junior Senior Unsecured Medium-Term
Note Program, affirmed (P)B1
....Subordinate Regular Bond/Debenture,
affirmed B1
....Subordinate Medium-Term Note Program,
affirmed (P)B1
....Preferred Stock Non-cumulative,
Affirmed B3(hyb)
..Outlook Action:
....Outlook changed to Negative from Stable(m)
Issuer: Banca Popolare di Milano S.C. a r.l.
....Subordinate Regular Bond/Debenture,
affirmed B1
..No Outlook assigned
Issuer: UniCredit S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa1, outlook remains Stable
....Short-term Bank Deposits,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Baseline Credit Assessment , Affirmed
baa3
....Adjusted Baseline Credit Assessment,
affirmed baa3
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook remains Stable
....Senior Unsecured Medium-Term Note
Program, affirmed (P)Baa1
....Junior Senior Unsecured Regular Bond/Debenture,
affirmed Baa2
....Junior Senior Unsecured Medium-Term
Note Program, affirmed (P)Baa2
....Subordinate Regular Bond/Debenture,
affirmed Baa3
....Subordinate Medium-Term Note Program,
affirmed (P)Baa3
....Preferred Stock Non-cumulative,
affirmed Ba3(hyb)
....Other Short Term, affirmed (P)P-2
..Outlook Action:
....Outlook remains Stable
Issuer: UniCredit Bank Ireland p.l.c.
..Affirmations:
....Backed Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook remains Stable
....Backed Senior Unsecured Medium-Term
Note Program, affirmed (P)Baa1
....Backed Commercial Paper, affirmed
P-2
....Backed Other Short Term, affirmed
(P)P-2
..Outlook Action:
....Outlook remains Stable
Issuer: UniCredit Delaware Inc.
..Affirmation:
....Backed Commercial Paper, affirmed
P-2
..No Outlook assigned
Issuer: UniCredit S.p.A., London Branch
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Commercial Paper, affirmed P-2
..No Outlook assigned
Issuer: UniCredit S.p.A., New York Branch
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa1, outlook remains Stable
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
..Outlook Action:
....Outlook remains Stable
Issuer: Intesa Sanpaolo S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa1, outlook remains Stable
....Short-term Bank Deposit,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Long-term Issuer Rating,
affirmed Baa1, outlook changed to Negative from Stable
....Baseline Credit Assessment, affirmed
baa3
....Adjusted Baseline Credit Assessment,
affirmed baa3
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook changed to Negative from Stable
....Backed Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook changed to Negative from 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
....Preferred Stock Non-cumulative,
affirmed Ba3(hyb)
....Preferred Stock Non-cumulative
Medium-Term Note Program, affirmed (P)Ba3
....Other Short Term, affirmed (P)P-2
..Outlook Action:
....Outlook changed to Stable(m) from Stable
Issuer: Intesa Funding LLC
..Affirmation:
....Backed Commercial Paper, affirmed
P-2
..No Outlook assigned
Issuer: Intesa Sanpaolo Bank Ireland p.l.c.
..Affirmations:
....Backed Short-term Deposit Note/CD
Program, affirmed P-2
....Backed Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook changed to Negative from Stable
....Backed Senior Unsecured Medium-Term
Note Program, affirmed (P)Baa1
....Backed Commercial Paper, affirmed
P-2
....Backed Other Short Term, affirmed
(P)P-2
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: Intesa Sanpaolo Bank Luxembourg S.A.
..Affirmations:
....Backed Short-term Deposit Note/CD
Program, affirmed P-2
....Backed Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook changed to Negative from Stable
....Backed Senior Unsecured Medium-Term
Note Program, affirmed (P)Baa1
....Backed Commercial Paper, affirmed
P-2
....Backed Other Short Term, affirmed
(P)P-2
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: Intesa Sanpaolo S.p.A., Hong
Kong Branch
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Deposit Note/CD Program,
affirmed (P)Baa1
....Short-term Deposit Note/CD Program,
affirmed (P)P-2
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
..No Outlook assigned
Issuer: Intesa Sanpaolo S.p.A., New York
Branch
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa1, outlook remains Stable
....Short-term Bank Deposits,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
..Outlook Action:
....Outlook remains Stable
Issuer: Intesa Sanpaolo S.p.A., London
Branch
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Short-term Bank Deposits,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Commercial Paper, affirmed P-2
..No Outlook assigned
Issuer: Sanpaolo IMI S.p.A.
..Affirmations:
....Senior Unsecured Regular Bond/Debenture
, affirmed Baa1, outlook changed to Negative from Stable
....Backed Senior Unsecured Regular Bond/Debenture
, affirmed Baa1, outlook changed to Negative from Stable
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: Intesa Bank Ireland p.l.c.
..Affirmations:
....Backed Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook changed to Negative from Stable
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: Banca IMI S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa1, outlook remains Stable
....Short-term Bank Deposits,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
....Baseline Credit Assessment, affirmed
baa3
....Adjusted Baseline Credit Assessment,
affirmed baa3
....Senior Unsecured Regular Bond/Debenture,
affirmed Baa1, outlook changed to Negative from Stable
..Outlook Action:
....Outlook changed to Stable(m) from Stable
Issuer: Credit Agricole Italia S.p.A.
..Placed on Review for Downgrade:
....Baseline Credit Assessment, currently
ba1
....Adjusted Baseline Credit Assessment,
currently baa1
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa1, outlook remains Stable
....Short-term Bank Deposits,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed Baa1(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
..Outlook Action:
....Outlook remains Stable
Issuer: Credito Valtellinese S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Ba2
....Short-term Counterparty Risk Ratings,
affirmed NP
....Long-term Bank Deposits,
affirmed Ba3, outlook remains Negative
....Short-term Bank Deposits,
affirmed NP
....Long-term Counterparty Risk Assessment,
affirmed Ba1(cr)
....Short-term Counterparty Risk Assessment,
affirmed NP(cr)
....Baseline Credit Assessment, affirmed
b1
....Adjusted Baseline Credit Assessment,
affirmed b1
....Senior Unsecured Regular Bond/Debenture,
affirmed B2, outlook changed to Negative from Stable
....Senior Unsecured Medium-Term Note
Program, affirmed (P)B2
....Subordinate Medium-Term Note Program,
affirmed (P)B2
....Other Short Term, affirmed (P)NP
..Outlook Actions:
....Outlook changed to Negative from Negative(m)
Issuer: Mediocredito Trentino-Alto Adige S.p.A.
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa3
....Short-term Counterparty Risk Ratings,
affirmed P-3
....Long-term Bank Deposits,
affirmed Baa3, outlook changed to Negative from Stable
....Short-term Bank Deposits,
affirmed P-3
....Long-term Counterparty Risk Assessment,
affirmed Baa3(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-3(cr)
....Long-term Issuer Ratings,
affirmed Ba1, outlook changed to Negative from Stable
....Baseline Credit Assessment, affirmed
ba3
....Adjusted Baseline Credit Assessment,
affirmed ba3
....Senior Unsecured Regular Bond/Debenture,
affirmed Ba1, outlook changed to Negative from Stable
..Outlook Action:
....Outlook changed to Negative from Stable
Issuer: Banca Sella Holding S.p.A.
..Placed on Review for Downgrade:
....Long-term Counterparty Risk Ratings,
currently Baa2
....Short-term Counterparty Risk Ratings,
currently P-2
....Long-term Bank Deposits,
currently Baa3, outlook changed to Ratings under Review from Positive
....Short-term Bank Deposits,
currently P-3
....Long-term Counterparty Risk Assessment,
currently Baa2(cr)
....Short-term Counterparty Risk Assessment,
currently P-2(cr)
....Baseline Credit Assessment, currently
ba2
....Adjusted Baseline Credit Assessment,
currently ba2
..Outlook Action:
....Outlook changed to Ratings under Review
from Positive
Issuer: Cassa Centrale Raiffeisen S.p.A.
..Placed on Review for Downgrade:
....Baseline Credit Assessment, currently
baa3
....Adjusted Baseline Credit Assessment,
currently baa3
....Long-term Issuer Ratings,
currently Baa2, outlook changed to Ratings under Review from Stable
....Senior Unsecured Regular Bond/Debenture,
currently Baa2, outlook changed to Ratings under Review from Stable
..Affirmations:
....Long-term Counterparty Risk Ratings,
affirmed Baa1
....Short-term Counterparty Risk Ratings,
affirmed P-2
....Long-term Bank Deposits,
affirmed Baa1, outlook remains Stable
....Short-term Bank Deposits,
affirmed P-2
....Long-term Counterparty Risk Assessment,
affirmed Baa2(cr)
....Short-term Counterparty Risk Assessment,
affirmed P-2(cr)
..Outlook Action:
....Outlook changed to Ratings under Review
from Stable
Issuer: Cassa Centrale Banca S.p.A.
..Placed on Review for Downgrade:
....Baseline Credit Assessment, currently
ba1
....Adjusted Baseline Credit Assessment,
currently ba1
....Long-term Issuer Ratings,
currently Ba1, outlook change to Ratings under Review from Stable
..Placed on Review direction Uncertain:
....Long-term Counterparty Risk Ratings,
currently Baa3
....Short-term Counterparty Risk Ratings,
currently P-3
....Long-term Bank Deposits,
currently Baa3, outlook remains Ratings under Review
....Short-term Bank Deposits,
currently P-3
....Long-term Counterparty Risk Assessment,
currently Baa3(cr)
....Short-term Counterparty Risk Assessment,
currently P-3(cr)
..Affirmations:
....Short-term Issuer Ratings,
affirmed NP
..Outlook remains unchanged at Ratings under Review
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Banks Methodology
published in November 2019. Please see the Rating Methodologies
page on www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series, category/class of
debt or security this announcement provides certain regulatory disclosures
in relation to each rating of a subsequently issued bond or note of the
same series, category/class of debt, security 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.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
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 rating analyst and the Moody's legal entity that has issued
the ratings.
The relevant office for each credit rating is identified in "Debt/deal
box" on the Ratings tab in the Debt/Deal List section of each issuer/entity
page of the website.
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.
Fabio Ianno
VP - Senior Credit Officer
Financial Institutions Group
Moody's France SAS
96 Boulevard Haussmann
Paris 75008
France
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Nicholas Hill
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Releasing Office:
Moody's France SAS
96 Boulevard Haussmann
Paris 75008
France
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
