(Finance) – Fitch has confirmed the rating long-term BBB’s AMCOa company owned by the Ministry of Economy and Finance and primary operator in the management of impaired loans, and the short-term F2 with stable outlook, maintaining the investment grade level. The rating is in line with that attributed to the Italian Republic (BBB / Stable).
The rating agency emphasizes the “patient approach” of AMCO, which supports the business continuity of borrowers (especially SMEs) “by establishing accommodating conditions for debt repayment, short-term structures and strategic advice for recovery”. Fitch considers this “single” and “not easily replicable” approach by distressed private sector debt managers, “who are more likely to adopt a profit maximization view with less focus on going concern.
“A replacement of AMCO with private actors would force SMEs into liquidation and could upset the economic fabricgenerating political and social tensions “, is emphasized in the report.
(Photo: © Veerasak Piyawatanakul)