DBRS moves Popolare trend to positive

DBRS said it revised its trend for Banca Popolare di Sondrio SpA to positive from stable and affirmed its BBB(low) long-term issuer rating.

“The change of the trend to positive reflects our view that the group has improved asset quality profile, evidenced by the lower stock of non-performing exposures (NPEs). We view that asset quality metrics are now more in line with European peers.

“In DBRS Morningstar’s view, this will help BPS mitigate the expected negative implications for asset quality due to higher interest rates, high inflation, and weaker economic prospects. The change in trend also reflects our view that core profitability has improved, as net interest income benefited from higher interest rates but also thanks to sound growth in fees and commissions,” the agency said in a press release.

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