DBRS Assigns Ratings to UBI’s EUR 15 billion Debt Issuance Programme

DBRS assigned ratings to Unione di Banche Italiane SpA’s (UBI or the Bank) EUR 15 billion Debt Issuance Programme (or the Programme). The Programme, which is for the issuance of Unsubordinated and Subordinated Notes, includes the newly debt instrument of Senior Non-Preferred.

Senior unsecured notes, issued under the Programme, will be rated BBB, in line with the Bank’s Long-Term Issuer Rating and Intrinsic Assessment (IA) of BBB. The Senior Non-Preferred Notes will be rated BBB (low), one notch below UBI’s IA, whilst the Subordinated Notes will be rated BB (high). All ratings have Stable trend. A full list of rating actions is included at the end of this press release.

RATING DRIVERS
The ratings are sensitive to any change in UBI’s Intrinsic Assessment (IA) which is currently at BBB. Deterioration in UBI’s asset quality and capital position or a weakening in the Bank’s franchise and reputation could contribute to negative pressure on the IA. Sustained improvement in risk profile and profitability supported by adequate capital buffers could contribute to positive rating implications.

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: November 25, 2015
Most Recent Rating Update: November 27, 2017

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