CREDEM: FITCH RATING ACTION

On April 28, 2020, Fitch Ratings (Fitch) downgraded the Government of Italy's ratings to BBB-/Stable/F3 from BBB/Negative/F2 due to the agency's estimates of the impact of global COVID-19 pandemic on Italy's economy and on the Sovereign's fiscal position.

As a consequence of the rating action taken on the Italian Sovereign, Fitch downgraded the ratings of Italian banks and, subsequently, the ratings of Credem, which were aligned to the Sovereign. Despite considering Credem in a relative position of strength versus many other competitors, due to a sound capitalization and a more resilient asset quality, Fitch states that Credem should not be rated above Italy's sovereign rating because Group's activities might be affected by the risk profile of the domestic economy and the Italian sovereign which, in turn, are significantly impacted by the economic effects of the coronavirus outbreak.

Nevertheless, the agency reviewed the Outlook to Stable from Negative, reflecting the relative strength of Credem's capitalisation and on the basis that, under various possible downside scenarios to baseline, Fitch expects the Group to maintain sufficient capital to absorb higher credit quality risks irrespective of a likely reduction in profitability.

As a consequence of the above rating action, Credem's ratings are as follows:

  • Long Term IDR: downgraded at 'BBB-' from 'BBB', Outlook Stable
  • Short Term IDR: affirmed at 'F3'
  • Viability Rating: downgraded at 'bbb-' from 'bbb'
  • Support Rating: affirmed at '5'
  • Support Rating Floor: affirmed at 'No Floor'
  • Long-TermDeposit Rating: downgraded at 'BBB' from 'BBB+'
  • Short-TermDeposit Rating: new rating at 'F3'
  • Derivative Counterparty Rating: downgraded at 'BBB-(dcr)' from 'BBB(dcr)'
  • Senior non Preferred Debt: downgraded at 'BB+' from 'BBB-'
  • Subordinated Debt: downgraded at 'BB' from 'BB+'

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

Reggio Emilia, May 15, 2020

CREDITO EMILIANO SPA (Chairman)

Lucio Igino Zanon di Valgiurata

CONTACTS

Media relations Credem

Investor relations Credem

+39.0522.582075 - +39.02.77426202

+39.0522.583611

rel@credem.it

investor@credem.it

www.credem.it

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CREDEM - Credito Emiliano S.p.A. published this content on 15 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2020 16:49:00 UTC