Morningstar DBRS Assigns Credit Ratings to Banca Sella Holding’s Subordinated Debt at BB with Stable Trend

DBRS Ratings GmbH (Morningstar DBRS) assigned credit ratings to Banca Sella Holding SpA (Sella Group or the Group) Subordinated Debt at BB with a Stable trend. At the same time, Morningstar DBRS discontinued the credit ratings on Banca Sella S.p.A. (Sella or the Bank) Mandatory Pay Subordinated Debt (ISIN: XS1687277555) as these instruments have been repaid. A full list of rating actions is included at the end of this press release.

KEY CREDIT RATING CONSIDERATIONS

In line with the Bank Obligations Framework set out in Morningstar DBRS’s Global Methodology for Rating Banks and Banking Organisations (June 2023), Subordinated Debt is rated two notches below Sella Group’s Long-Term Issuer Rating of BBB (low).

CREDIT RATING DRIVERS

Any positive change in the Sella Group’s Long-Term Issuer ratings would have positive implications for the Subordinated Debt rating.

Similarly, any negative change in the Sella Group’s Long-Term Issuer rating would have negative implications for the rating.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

There were no Environmental, Social, or Governance factors that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings (23 January 2024) https://www.dbrsmorningstar.com/research/416784/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings.

Notes:
All figures are in EUR unless otherwise noted.

The principal methodology is the Global Methodology for Rating Banks and Banking Organisations (22 June 2023) https://www.dbrsmorningstar.com/research/415978/global-methodology-for-rating-banks-and-banking-organisations. In addition Morningstar DBRS uses the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Risk Factors in Credit Ratings https://www.dbrsmorningstar.com/research/416784/dbrs-morningstar-criteria-approach-to-environmental-social-and-governance-risk-factors-in-credit-ratings in its consideration of ESG factors

The credit rating methodologies used in the analysis of this transaction can be found at: https://www.dbrsmorningstar.com/about/methodologies

The sources of information used for this rating include Morningstar Inc. and Company Documents, Banca Sella Holding Subordinated Debt Terms & Conditions from March 12, 2024. Morningstar DBRS considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

Morningstar DBRS does not audit the information it receives in connection with the credit rating process, and it does not and cannot independently verify that information in every instance.

The conditions that lead to the assignment of a Negative or Positive trend are generally resolved within a 12-month period. Morningstar DBRS’ outlooks and ratings are under regular surveillance.

For further information on Morningstar DBRS historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: https://registers.esma.europa.eu/cerep-publication. For further information on Morningstar DBRS historical default rates published by the Financial Conduct Authority (FCA) in a central repository, see https://data.fca.org.uk/#/ceres/craStats.

This credit rating is endorsed by DBRS Ratings Limited for use in the United Kingdom.

Lead Analyst: Arnaud Journois, Vice President - European Financial Institution Ratings
Rating Committee Chair: Elisabeth Rudman, Managing Director – Head of Global FIG
Initial Rating Date: July 7, 2014
Last Rating Date: May 8, 2023

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