DBRS Confirms Intesa’s State Guaranteed Notes at BBB (high) after Sovereign Rating Action
Banking OrganizationsSummary
DBRS Ratings Limited (DBRS) confirmed Intesa Sanpaolo SpA’s (Intesa or the Bank) BBB (high) ratings on the State Guaranteed Notes (ISINs: IT0005238859, IT0005239535), 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 13, 2018. The Notes are unconditionally and irrevocably guaranteed by the Italian State, therefore the ratings on these Notes are at the same level as DBRS’ ratings on the Republic of Italy. The State Guarantee continues to apply for the Notes that are still outstanding in the market after the buyback of other notes by Intesa Sanpaolo.
DBRS Ratings Limited (DBRS) confirmed Intesa Sanpaolo SpA’s (Intesa or the Bank) BBB (high) ratings on the State Guaranteed Notes (ISINs: IT0005238859, IT0005239535), 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 13, 2018. The Notes are unconditionally and irrevocably guaranteed by the Italian State, therefore the ratings on these Notes are at the same level as DBRS’ ratings on the Republic of Italy. The State Guarantee continues to apply for the Notes that are still outstanding in the market after the buyback of other notes by Intesa Sanpaolo.
Concurrently, DBRS has discontinued the ratings on Intesa’s State Guaranteed Notes (ISINs: IT0005239527, IT0005247645, IT0005250185, IT0005257768), due to their buyback by Intesa and the withdrawal of the State Guarantee following the request sent by Intesa to the Italian Ministry of Finance (MEF).
The bonds backed by the State Guarantee were previously issued by the former Veneto Banca and Banca Popolare di Vicenza, and subsequently acquired by Intesa.
RATING DRIVERS
Given the guarantee, the ratings on the State Guaranteed Notes will move in line with the ratings of the Republic of Italy. Upward rating pressure on the ratings for the State Guaranteed Notes would require an improvement of the ratings for the Italian Sovereign. Downward pressure would be driven by a downgrade of the Sovereign’s ratings.
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 (January 2018). This can be found at: http://www.dbrs.com/about/methodologies
The sources of information used for this rating include Company reports and the Ministry of Economy and Finance (MEF). 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, Senior Vice President – Global FIG
Rating Committee Chair: Ross Abercromby, Managing Director, Global FIG
Initial Rating Date: September 13, 2013
Most Recent Rating Update: June 21, 2018
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