DBRS Morningstar Confirms Carige’s State Gteed Notes at BBB (high); Trend Changed to Negative

DBRS Ratings GmbH (DBRS) confirmed the BBB (high) rating on Banca Carige S.p.A.’s (Carige or the Bank) State Guaranteed Notes (ISIN: IT0005359184). The trend was changed to Negative from Stable.

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), on May 8, 2020 and the change of trend to Negative from Stable.

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.

RATING DRIVERS
Given the guarantee, the ratings on the State Guaranteed Notes will move in line with the ratings of the Republic of Italy. An upgrade of the ratings for the State Guaranteed Notes would require an upgrade of the ratings for the Italian Sovereign. A downgrade would be driven by a downgrade of the Sovereign’s ratings.

ESG CONSIDERATIONS
A description of how DBRS Morningstar considers ESG factors within the DBRS Morningstar analytical framework and its methodologies can be found at: https://www.dbrsmorningstar.com/research/357792.

Notes:
All figures are in EUR unless otherwise noted.

The principal methodology is the DBRS Criteria: Guarantees and Other Forms of Support (22 January 2020) https://www.dbrsmorningstar.com/research/355780/dbrs-morningstar-criteria-guarantees-and-other-forms-of-support

For more information regarding rating methodologies and Coronavirus Disease (COVID-19), please see the following DBRS Morningstar press release: https://www.dbrsmorningstar.com/research/357883

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 12-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.

The sensitivity analysis of the relevant key rating assumptions can be found at: https://www.dbrsmorningstar.com/research/360950

Ratings assigned by DBRS Ratings GmbH are subject to EU and U.S. regulations only.

Lead Analyst: Arnaud Journois, Vice President – Global FIG
Rating Committee Chair: Ross Abercromby, Managing Director – Global FIG
Initial Rating Date: January 25, 2019
Last Rating Date: November 20, 2019

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Tel. +49 (69) 8088 3500
Geschäftsführer: Detlef Scholz
Amtsgericht Frankfurt am Main, HRB 110259

For more information on this credit or on this industry, visit www.dbrsmorningstar.com.