Credem: Fitch rating action

PRESS RELEASE

CREDEM: FITCH RATING ACTION

On August 31st, 2018, Fitch Ratings (Fitch) affirmed Italy's Long Term rating at "BBB" but revised its Outlook from "Stable" to "Negative". The decision was mainly driven by the agency expectation of a degree of fiscal loosening paired with a context of high public debt and political uncertainty.

Today, following the above mentioned rating action taken on the sovereign, Fitch revised the Outlook of 5 Italian banks. Credito Emiliano (Credem)'s Long Term rating was confirmed at "BBB" while its Outlook was revised from "Stable" to "Negative", only as a mere consequence of the decision taken on Italy's Outlook and in accordance with Fitch's view that the bank should not be rated above Italy's rating.

Nevertheless, Fitch highlighted that despite Credem activities being predominantly domestic, its business model resulted in a more resilient profitability and a healthier asset quality than its Italian peers. Indeed, Credem's profitability was mainly supported by:

• • strong underwriting standards and a strategy of targeting lower risk and more affluent customers, resulting in low and stable loan impairment charges;

• • wealth management and insurance activities that have contributed fee and commission income during the years of low interest rates.

All Credem's ratings remained unchanged, as follows:

• • Long Term IDR: affirmed at "BBB",

• • Short Term IDR: affirmed at "F2",

• • Support Rating: affirmed at "5",

• • Support Rating Floor: affirmed at "No Floor",

• • Viability Rating: affirmed at "bbb",

• • Derivative Counterparty Rating: affirmed at "BBB(dcr)",

• • Senior unsecured EMTN programme: affirmed at "BBB".

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

Reggio Emilia, September 5th, 2018

CREDITO EMILIANO S.p.A.
(Chairman)
Lucio Igino Zanon di Valgiurata
Contacts:
Media Relations Credem	Investor Relations Credem
+ 39 0522 582075 - 02 77426202	+ 39 0522 582580-3611
[e-mail]	[e-mail]

www.credem.it