Fitch hikes Iccrea Banca

Fitch Ratings said it raised Iccrea Banca SpA’s issuer default and its senior preferred debt ratings to BBB- from BB+. The agency also upgraded the bank’s subordinated notes to BB from BB-.Concurrently, the agency upgraded Gruppo Bancario Cooperativo Iccrea’s BBB- from BB+.

Iccrea Banca's long-term IDRs are the same as GBCI's since it is a full member of the banking group and is covered by the cross-support mechanism for capital and liquidity, Fitch said.

“The upgrade reflects GBCI's faster-than-expected implementation of strategic initiatives to improve business and revenue diversification despite the fairly short history of the group under its current structure. It also reflects further progress in reducing balance-sheet risk and ample capital buffers supporting the group's business model and growth potential. This, together with a more favorable interest-rate environment than before 2023, should support GBCI's structural earnings generation capacity,” Fitch said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.