DBRS Morningstar Confirms BMPS’ State Guaranteed Notes at BBB (high) after Sovereign Rating Action

DBRS Ratings GmbH (DBRS Morningstar) confirmed the ratings of Banca Monte dei Paschi di Siena’s (BMPS or the Bank) State Guaranteed Notes (ISINs: IT0005240509, IT0005246423, or the Notes) at BBB (high) with a Stable trend.

RATING RATIONALE
Today’s rating action follows DBRS Morningstar’s 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 November 15, 2019.

The Notes are unconditionally and irrevocably guaranteed by the Italian State, therefore the ratings on these Notes are at the same level as DBRS Morningstar’s ratings on the Republic of Italy.

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 DBRS Criteria: Guarantees and Other Forms of Support (January 2019). This can be found at: http://www.dbrs.com/about/methodologies

The sources of information used for this rating include Company Documents and the Ministry of Economy and Finance (MEF). DBRS Morningstar considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

DBRS Morningstar 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 Morningstar's outlooks and ratings are under regular surveillance

For further information on DBRS Morningstar 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 GmbH are subject to EU and US regulations only.

Lead Analyst: Arnaud Journois, Vice President – Global FIG
Rating Committee Chair: Elisabeth Rudman - Managing Director, Head of European FIG - Global FIG
Initial Rating Date: January 18, 2013
Last Rating Date: July 16, 2019

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