DBRS Assigns BB (high) Rating to Credito Valtellinese Sc’s Tier 2 Notes

DBRS Ratings Limited (DBRS) has today assigned a BB (high) rating to the Mandatory Pay Subordinated Debt, in the form of Tier 2 Notes (the Notes), to be issued by Credito Valtellinese S.c. (Creval, the Bank or the Issuer) under its EUR 5,000,000,000 Medium Term Note Programme (EMTN Programme). The trend on the Notes is Negative.

The BB (high) rating assigned to the Subordinated Notes is one notch below the Bank’s intrinsic assessment (IA) of BBB (low), in line with DBRS’ methodology for Rating Bank Capital Securities – Subordinated, Hybrid, Preferred & Contingent Capital Securities.

DBRS highlights that the Notes constitute direct and unsecured obligations of the Issuer and rank pari passu without any preference among themselves. The Notes will rank in right of payments after unsubordinated unsecured creditors (including depositors and any holder of Senior Notes and their respective coupons) of the Issuer and in priority to the claims of its shareholders.

RATING DRIVERS
The rating is sensitive to a change in Creval’s Long-Term Senior Debt and Deposits rating and IA which are currently at BBB (low) with Negative trend.

Notes:
All figures are in EUR unless otherwise noted.

The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (July 2016). Other applicable methodologies include the DBRS Criteria: Support Assessments for Banks and Banking Organisations (March 2016) and DBRS Criteria: Rating Bank Capital Securities – Subordinated, Hybrid, Preferred & Contingent Capital Securities (February 2016). These can be found can be found at: http://www.dbrs.com/about/methodologies

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

This is the first DBRS rating on this financial instrument.

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 historical default rates published by the European Securities and Markets Authority (“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: Nicola De Caro, Vice President - Global FIG
Rating Committee Chair: Elisabeth Rudman, Managing Director, Head of EU FIG, Global FIG
Initial Rating Date: February 7, 2013
Most Recent Rating Update: June 14, 2016

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