DBRS lifts Monte dei Paschi

DBRS said it upgraded Banca Monte dei Paschi di Siena SpA's long-term issuer rating to BB (high) from BB (low). The bank's subordinated notes were also upgraded by three notches to BB (low) from B (low) to revert to the agency’s standard notching for European subordinated debt.

“The two-notch upgrade of the credit ratings considers the significant improvements BMPS has carried out in the past 12-18 months. Morningstar DBRS notes that the bank's high sensitivity to interest rates, in line with the sector, has led to a substantial increase in revenues on top of improvements related to the evolution of the business mix,” the agency said in a press release.

Additionally, DBRS noted, “The upgrade also reflects that whilst BMPS' reputation has previously suffered from legacy conduct issues, a series of positive judicial outcomes in late 2023 have led to a significant reduction in outstanding legal risks.”

The trend is positive.

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