Fitch boosts BPER

Fitch Ratings said it raised BPER Banca SpA’s issuer default and senior preferred ratings to BBB- from BB+ and subordinated ratings to BB from BB-.

“The upgrade reflects BPER's progress in executing its impaired loan reduction strategy, resulting in a significant improvement in asset quality to levels that are closer to international averages and a reduction in capital encumbrance from unreserved impaired loans. These improvements have considerably reduced BPER's vulnerability to asset-quality shocks in Italy to levels in line with similarly rated peers.

“The upgrade also considers the bank's strengthened franchise in Italy, following the recent acquisitions of Banca Carige SpA and former Intesa Sanpaolo SpA (IntesaSP) branches, which should over time help contribute to improved operating profitability,” Fitch said in a press release.

The outlook is stable.

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