DBRS Changes Trend to Stable for Intesa San Paolo A (low) Rating

DBRS Ratings Limited (DBRS) has today changed the trend on Intesa San Paolo’s A (low) Senior Long-Term Debt and Deposit and Issuer Ratings to Stable from Negative. At the same time, DBRS confirmed the Short-Term Debt and Deposit Rating of R-1 (low) with a Stable trend. There was no change to the Intrinsic Assessment (IA) of A (low) or the support assessment of SA-2.

The change in the trend to stable reflects the recent change in DBRS’ trend on the Republic of Italy’s A (low) Long Term rating to Stable from Negative, as well as DBRS’ view that the Bank continues to demonstrate resilient economic performance in the slowly recovering Italian economy. The SA-2 considers Intesa SanPaolo’s role as a systemically important institution of the financial system in Italy and DBRS’s expectation of timely systemic support in the event of a highly stressed scenario. However, with the current rating for the Italian sovereign at the same level as the intrinsic assessment for Intesa SanPaolo, there is currently no uplift to the Group’s ratings. The revision of the trend to Stable also impacts specifically rated instruments as highlighted in the table below.

Notes:
All figures are in Euros (EUR) unless otherwise noted.

The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (June 2014). Other applicable methodologies include the DBRS Criteria: Support Assessments for Banks and Banking Organisations (March 2015) and DBRS Criteria: Rating Bank Capital Securities – Subordinated, Hybrid, Preferred & Contingent Capital Securities (February 2015). These can be found can be found at: http://www.dbrs.com/about/methodologies

The sources of information used for this rating include company reports and SNL Financial. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

Generally, the conditions that lead to the assignment of a Negative or Positive Trend are resolved within a twelve month period. DBRS’s outlooks and ratings are under regular surveillance.

For further information on DBRS historic default rates published by the European Securities and Markets Administration (“ESMA”) in a central repository, see:
http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

Lead Analyst: Peter Burbank
Rating Committee Chair: Alan G. Reid
Initial Rating Date: September 19, 2013
Most Recent Rating Update: October 23, 2014

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For additional information on this rating, please refer to the linking document located at: http://www.dbrs.com/research/236983/banks-and-banking-organisations-linking-document.pdf

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