DBRS Confirms BMPS’ State Guaranteed Notes at BBB (high) / R-1 (low) after Sovereign Rating Action

DBRS Ratings Limited (DBRS) has today confirmed Banca Monte dei Paschi di Siena SpA’s (BMPS or the Bank) ratings on the State Guaranteed Notes (ISINs IT0005240491, IT0005240509, IT0005246423) at BBB (high) / R-1 (low), with a Stable trend. Today’s rating action follows DBRS’ confirmation of Italy’s Long-Term Foreign and Local Currency ratings of BBB (high), and Short-Term Foreign and Local Currency ratings of R-1 (low), all with a Stable trend, on July 14, 2017. DBRS also discontinued the rating on BMPS’ EUR 4 billion State Guaranteed Notes (ISIN: IT0004804362) following their repayment.

DBRS’ ratings of B(low) / R-5 for BMPS’ Long-Term Senior Debt and Short-Term Debt remain Under Review with Developing Implications. DBRS plans to conclude its rating review within the next few weeks, after the issuance of the Ministerial Decrees which will implement the burden sharing and precautionary recapitalisation of the Bank approved by the European Commission.

RATING DRIVERS
Given the guarantee, the ratings on the State Guaranteed Notes will move in line with the ratings of the Republic of Italy.

Notes:
All figures are in Euros unless otherwise noted.

The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (May 2017). Other applicable methodologies include the DBRS Criteria: Guarantees and Other Forms of Support (February 2017). These can be found at: http://www.dbrs.com/about/methodologies

The sources of information used for this rating include company documents, the Ministry of Economy and Finance (MEF), the European Commission (EC) and the European Central Bank (ECB). DBRS considers the information available to it for the purposes of providing this rating to be 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 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 and US 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: January 18, 2013
Most Recent Rating Update: March 24 2017

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