DBRS Assigns BB Rating to Banco BPM’s EUR 500 million Tier 2 Subordinated Notes

DBRS Ratings Limited (DBRS) assigned a BB rating with Stable Trend to the EUR 500 million Mandatory Pay Subordinated Notes issued by Banco BPM SpA (the Issuer or the Bank), in the form of Tier 2 instruments (XS1686880599), under its EUR 25,000,000,000 Euro Medium Term Note Programme (EMTN Programme).

The BB rating assigned to the Subordinated Notes is two notches below the Bank’s intrinsic assessment (IA) of BBB (low), in line with the Debt Obligations Framework set out in DBRS’s Global Banking Methodology (May 2017).

RATING DRIVERS
The rating is sensitive to any change in Banco BPM’s Long-Term Issuer Rating and IA which are currently at BBB (low). 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: Jan 5, 2017
Most Recent Rating Update: Jul 14, 2017

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