(Finance) – Il Desio and Brianza Bank announces that the International Agency Fitch Ratingsfollowing the annual rating review, confirmed the IDR ratings assigned to the Bank and raised the ratings on Deposits by one notch.
The Agency’s positive opinion on the IDR, we read in a note, “reflects the constant improvement of fundamentals of the Bank, in particular in terms of profitability and asset quality, worthy of an upgrade of the respective outlook”.
Appreciation also for the “solid capitalization of the Bank, whose rating moves to “investment grade” level with an adequate funding profile”.
The Agency recognizes the “exceeding of the economic and financial objectives” set by the three-year strategic plan thanks to the acceleration of the risk reduction strategy which has translated into “greater profitability and a surplus of available capital” for growth also through operations of extraordinary finance. The improvement in profitability is in fact supported “both by the recent acquisitions of branches, which make it possible to improve the diffusion of the Bank’s franchising, and by the ongoing operations aimed at consolidating and expanding the presence of the Banking Group in the consumer credit sector with concrete effects on the stability and diversification of revenues and the cross-selling of asset and insurance products”.
The robust levels of coverage on NPLs also provide the Bank with an “adequate buffer to absorb any weakening of asset quality expected at system level”.
Finally, the Agency improved the ratings on the Bank’s short and medium-long term deposits by one notch, reflecting “the high protection that would accrue to depositors in a default scenario thanks to the MREL buffer on regulatory capital requirements”.