CREDEM: FITCH AFFIRMED LONG-TERM IDR AT 'BBB'

Today Fitch Ratings (Fitch), despite a recent revision of estimates on Italian GDP, which is expected to contract by 2% in 2020 before recovering in 2021, affirmed Credito Emiliano's (Credem) Long-Term Issuer Default Rating (IDR) at 'BBB' and Viability Rating (VR) at 'bbb'. The outlook remained Negative, in line with the Sovereign.

The revision of Italian GDP estimates led the agency to change its risk considerations on the banking credit profiles that were skewed to the downside. Nevertheless, with regards to Credem, Fitch highlighted the bank's relative position of strength thanks to its risk appetite and prudent management stance, which resulted in asset quality remaining consistently better than peers through the cycle and adequate capitalization. Moreover, Fitch stated that Credem's diversified and stable business model has enabled the

Group to perform a greater earnings stability.

With today rating action Fitch reviewed the rating of 14 Italian banking groups, expecting asset quality to weaken relative to previous expectations, earnings challenges to intensify due to weaker business volumes and rising loan impairment charges, and wholesale funding costs to possibly raise in the longer term as a combination of Italian spread widening and bank debt re-pricing.

Additionally, in accordance with its previous rating action of March 4, 2020, Fitch removed the Long-Term Deposit Rating and debt SNP and T2 ratings from 'Under Criteria Observation' as follows:

  • Long-TermDeposit Rating: upgraded at 'BBB+' from 'BBB'
  • Senior Non Preferred, downgraded at 'BBB-' from 'BBB'
  • Tier 2, downgraded at 'BB+' from 'BBB-'

The original Fitch Ratings' press release is available on the agency's website.

Reggio Emilia, March 24, 2020

CREDITO EMILIANO SPA

(Chairman)

Lucio Igino Zanon di Valgiurata

CONTACTS

Media relations Credem

Investor relations Credem

+39.0522.582075 - +39.02.77426202

+39.0522.582580 - 3611

rel@credem.it

investor@credem.it

www.credem.it

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CREDEM - Credito Emiliano S.p.A. published this content on 24 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 March 2020 18:12:05 UTC