14th May 2021

Moody's takes positive rating actions on 10 Italian banks

Moody's Investors Service has taken rating actions on 10 Italian banks. The outlooks on the long-term deposit ratings and/or long-term senior unsecured debt ratings and/or long-term issuer ratings of Intesa Sanpaolo S.p.A., Banco BPM S.p.A, BPER Banca S.p.A., Mediobanca S.p.A., Credito Emiliano S.p.A., FCA Bank S.p.A., Banca Nazionale Del Lavoro S.p.A., and Cassa Centrale Banca S.p.A. were changed to stable from negative.

The outlook on the long-term deposits ratings of Mediocredito Trentino-Alto Adige S.p.A. was changed to stable from negative while the long-term senior unsecured debt ratings and issuer ratings remains negative. The outlook on the long-term deposit and senior unsecured debt ratings of UniCredit S.p.A. remains stable. Concurrently, all banks' ratings and assessments have been affirmed.

Amongst other factors, the rating actions reflect the recovery in Italy's economy, which Moody's expects to grow by 3.7% in GDP in 2021 after a pandemic-induced contraction of 8.9% in 2020, which will provide some relief to banks' activities. Notwithstanding, Moody's expects business conditions for Italian banks to remain challenging, due to some continued restrictions and business closures, and due to sluggish loan demand and ultra-low interest rates, all of which will continue to exert pressure on banks' profitability and ability to generate capital.

Moody's Trends(127 articles)