Banca Popolare di Sondrio S C p A : Dbrs Morningstar conferma il rating a lungo termine al livello investment grade "BBB low"; migliorato il Trend che viene portato a "Stabile" da "Negativo"

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Società cooperativa per azioni - fondata nel 1871

Sede sociale e direzione generale: I - 23100 Sondrio So - Piazza Garibaldi 16

Iscritta al Registro delle Imprese di Sondrio al n. 00053810149

Iscritta all'Albo delle Banche al n. 842

Capogruppo del Gruppo bancario Banca Popolare di Sondrio, iscritto all'Albo dei Gruppi bancari al n. 5696.0

Iscritta all'Albo delle Società Cooperative al n. A160536

Aderente al Fondo Interbancario di Tutela dei Depositi

Codice fiscale e Partita IVA: 00053810149

Capitale Sociale € 1.360.157.331 - Riserve € 1.253.388.214 (dati approvati dall'Assemblea dei soci dell'11/5/2021)

COMUNICATO STAMPA

Banca Popolare di Sondrio:

Dbrs Morningstar conferma il rating a lungo termine al livello investment grade "BBB low"; migliorato il Trend che viene portato a "Stabile" da "Negativo".

Si informa che in data odierna l'agenzia di valutazione del credito DBRS Morningstar, al termine del processo di revisione annuale, ha confermato tutti i rating precedentemente assegnati alla Banca Popolare di Sondrio. Nel contempo il giudizio sulle prospettive (Trend) viene portato a "Stabile" da "Negativo". L'agenzia ha inoltre assegnato, per la prima volta, il rating al debito subordinato collocandolo al livello "BB", con Trend Stabile.

Di seguito, il dettaglio dei rating attualmente assegnati alla banca:

• Long-TermIssuer Rating: "BBB (low)"
• Short-TermIssuer Rating : "R-2 (middle)"
• Long-TermSenior Debt: "BBB (low)"
• Short-TermDebt: "R-2 (middle)"
• Long-TermDeposits: "BBB"
• Short-TermDeposits: "R-2 (high)"
• Subordinated Debt: "BB"

Il miglioramento del Trend riflette l'apprezzamento dell'agenzia di rating per come la banca ha affrontato le ricadute economiche della situazione pandemica, riuscendo dal 2020 pure a ridurre i crediti deterioriati e continuando a mostrare buoni livelli di copertura. La revisione favorevole tiene, inoltre, in dovuto conto il recente miglioramento degli utili conseguiti dalla banca.

Si allega il comunicato stampa pubblicato da DBRS Morningstar.

Sondrio, 15 novembre 2021

BANCA POPOLARE DI SONDRIO SCPA

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Banca Popolare di Sondrio

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CONTATTI SOCIETARI:
Investor Relations	Relazioni esterne
Dott. Michele Minelli	Rag. Paolo Lorenzini
0342-528.745	0342-528.212
[e-mail]	[e-mail]

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Banca Popolare di Sondrio

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Co-operative Society by shares - founded in 1871

Head office and general management: I - 23100 Sondrio So - Piazza Garibaldi 16

Registered in the Register of Companies of Sondrio at no. 00053810149

Registered in the Register of Banks under no. 842.

Parent Bank of the Banca Popolare di Sondrio Banking Group, registered in the Register of Banking Groups under no. 5696.0

Registered in the Register of Cooperative Societies under no. A160536

Member of the Interbank Deposit Protection Fund Tax code and VAT number: 00053810149

Share Capital € 1,360,157,331 - Reserves € 1,253,388,214 (data approved by the Shareholders' Meeting of 11/5/2021

PRESS RELEASE

Banca Popolare di Sondrio:

Dbrs Morningstar confirms the Long-Term Issuer Rating at the investment grade level "BBB low"; the Trend positively revised to "Stable" from "Negative".

Please note that today the credit rating agency DBRS Morningstar, at the end of its annual review process, confirmed all the ratings previously assigned to Banca Popolare di Sondrio. At the same time the rating on the outlook (Trend) has been changed to "Stable" from "Negative". The agency also assigned, for the first time, a rating to subordinated debt, placing it at "BB", with a Stable Trend.

Below are the details of the ratings assigned to the bank:

• Long-TermIssuer Rating: "BBB (low)"
• Short-TermIssuer Rating : "R-2 (middle)"
• Long-TermSenior Debt: "BBB (low)"
• Short-TermDebt: "R-2 (middle)"
• Long-TermDeposits: "BBB"
• Short-TermDeposits: "R-2 (high)"
• Subordinated Debt: "BB"

The improvement in Trend reflects the rating agency's appreciation of how the bank has dealt with the economic fallout of the pandemic situation, while also managing since 2020 to reduce impaired loans and continuing to show good coverage levels. The favourable review also takes due account of the recent improvement in the bank's earnings.

The press release issued by DBRS Morningstar is attached.

Sondrio, 15 November 2021

BANCA POPOLARE DI SONDRIO SCPA

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Banca Popolare di Sondrio

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COMPANY CONTACTS:
Investor Relations	External Relations
Dott. Michele Minelli	Rag. Paolo Lorenzini
0342-528.745	0342-528.212
[e-mail]	[e-mail]

The English translation is provided only for the benefit of the reader and in the case of discrepancies the Italian version shall prevail.

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Banca Popolare di Sondrio

PRESS RELEASE

NOVEMBER 15, 2021

DBRS Morningstar Revises Trend on Banca Popolare di Sondrio to Stable, Confirms BBB (low) Long-Term Issuer Rating and Assigns "BB" Sub Debt Rating

BANKING ORGANIZATIONS

DBRS Ratings GmbH (DBRS Morningstar) confirmed the ratings of Banca Popolare di Sondrio S.C.p.A. (BPS or the Bank), including the Long-Term Issuer Rating of BBB (low) and the Short- Term Issuer rating of R-2 (middle). The Bank's Deposit ratings were confirmed at BBB/R-2 (high), one notch above the IA, reflecting the legal framework in place in Italy, which has full depositor preference in bank insolvency and resolution proceedings. The trend on all ratings has been revised to Stable, from Negative. In addition, DBRS Morningstar also assigned a subordinated debt rating of "BB" with Stable Trend. DBRS Morningstar expects that any future issuance by BPS of Subordinated Debt would be rated at this level. The "BB" rating is two notches below BPS's Long-Term Issuer Rating and Long-Term Senior Debt rating, in line with the Framework set out in DBRS Morningstar's "Global Methodology for Rating Banks and Banking Organisations", dated 19 July 2021. DBRS Morningstar has also maintained the Intrinsic Assessment (IA) at BBB (low) and the Support Assessment at SA3. A full list of rating actions is included at the end of this press release.

KEY RATING CONSIDERATIONS

The change of the trend to Stable reflects our view that BPS has successfully managed through the economic disruption caused by the COVID-19 pandemic, boosted by the reduction in Non- Performing Loans (NPLs) since 2020, and the good coverage ratios. DBRS Morningstar views BPS as being well placed to absorb any potential asset quality deterioration that could be driven by the ending of the support provided by the moratoria schemes. In addition, the change in the trend takes into account the improved earnings in recent periods.

The confirmation of the ratings takes into account the Group's improved asset quality profile, evidenced by the lower stock of non-performing exposures (NPEs), following the securitisation of around EUR 1.4 billion of NPLs in 2020. The ratings also incorporate the Bank's relatively small national position but solid franchise in the Lombardy region, especially in the province of Sondrio. BPS also has a long and proven earnings track record and a robust retail funding base. In addition, the ratings are underpinned by BPS's ample capital buffers above supervisory requirements.