Fitch: Mediobanca notes BBB

Fitch Ratings said it assigned a rating of BBB to Mediobanca SpA’s up to €500 million tier 2 subordinated floating-rate debt.

The notes mature in 2025 and pay a floating annual coupon linked to Euribor with a minimum coupon of 3%, Fitch said.

The notes qualify as tier 2 capital and contain contractual loss-absorption features, which will be triggered after the bank becomes non-viable with no equity conversion, the agency said.

The notes are rated one notch below Mediobanca’s viability rating of BBB+, reflecting one notch for loss severity and zero notches for non-performance risk, the agency added.

The subordinated debt rating is sensitive to the same factors that may affect the bank’s viability rating, Fitch said.

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