(Finance) – Moody’s today confirmed all ratings and ratings of Mediobancain particular the long-term rating of Baa1, while the outlook on Mediobanca’s deposit, issuer and senior unsecured debt ratings remains stable.
In a note, the rating agency underlines the good capitalization of the bank with a Common Equity Tier 1 ratio of 15.3% at the end of 2023, a solid and diversified profitability reflected in an annualized return on assets of 1.3% on the same date, and a high reliance on wholesale financing. The agency’s assessment also takes into account the bank’s large stake (13%) in Assicurazioni Generali, which exposes Mediobanca to equity risk but provides a recurring source of earnings. Although Mediobanca is significantly exposed to unsecured consumer loans which carry higher risks than residential mortgages, Moody’s expects that the likely increase in provisioning needs will be offset by a high and sustainable level of profitability over the next 12-18 months.”
Mediobanca, Moody’s confirms Baa1 long-term rating
