DBRS Assigns First-Time Ratings to Banca Akros

DBRS Ratings Limited (DBRS) assigned first-time ratings to Banca Akros SpA (or the Bank). Banca Akros is the Italian corporate and investment banking subsidiary of Banco BPM SpA (the Parent or the Group). The ratings assigned include BBB (low) / R-2 (middle) Issuer Ratings. The trend on all ratings is Stable. A full list of rating actions is included at the end of this press release.

Banco BPM views Banca Akros as a core component of its franchise and, therefore, DBRS has assigned a support assessment of SA1 to Banca Akros. The SA1 designation implies strong and predictable support from the Parent. As a supported rating with an SA1 designation, Banca Akros’ ratings are at the same level as those of the Parent.

The SA1 support assessment takes into consideration its 100% ownership by Banco BPM SpA and its strategic importance in the Group, the consistent track record of adequate financial performance, as well as the growing role of the corporate and investment banking activities of Banco BPM Group, in line with the business plan announced with the merger of Banca Popolare di Milano and Banco Popolare in May 2016.

RATING DRIVERS
Given the SA1 designation, which implies the expectation of strong and predictable support from the Parent, Banca Akros’ ratings will generally move in tandem with Banco BPM’s ratings. DBRS currently rates Banco BPM’s Long-Term Issuer Rating and Long-Term Senior Debt at BBB (low), whilst the Short-Term Issuer Rating and Short-Term Debt are rated at R-2 (middle). All ratings have a Stable trend.

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). This can be found at: http://www.dbrs.com/about/methodologies

The sources of information used for this rating include company documents. 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: Sep 8, 2017
Most Recent Rating Update: Sep 8, 2017

DBRS Ratings Limited
20 Fenchurch Street
31st Floor
London
EC3M 3BY
United Kingdom
Registered in England and Wales: No. 7139960

Information regarding DBRS ratings, including definitions, policies and methodologies, is available on www.dbrs.com.