(Finance) – Therating agency DBRS Morningstar today it improved the rating on Iccrea Banca, parent company of the BCC Iccrea Group, bringing it to investment grade level; in particular, the long-term issuer rating improved to BBB (low) from BB (high) and the short-term issuer rating to R-2 (middle) from R-3. The trend is stable across all ratings.
The new rating by the rating agency reflects the continuous progress made on the asset quality front, with the reduction in the stock of NPLs and the presence of robust coverage levels and the simultaneous maintenance of solid capital buffers. The rating upgrade also considers the improvements achieved in profitability thanks also to the initiatives undertaken in terms of efficiency and commission contribution.
According to the DBRS Morningstar agency, the Group’s ratings “continue to reflect the adequate liquidity position and the progress achieved in making the Group’s organizational structure increasingly integrated”.
Mauro Pastore, General Director of the BCC Iccrea Group, added: “Today’s rating from DBRS Morningstar which takes us to Investment Grade level represents a truly important recognition than what the Group has done since its establishment just over four years ago. After the recent results of the stress tests, which placed us at the top of the Italian banking system, today’s upgrade represents a further proof of the goodness of the choices made and the results achieved. The Cooperative Banking Group has proven to be a successful model that has allowed us to provide great value to communities, improving the competitive positioning of the BCC Iccrea Group and enhancing the autonomy, localism and proximity of our mutual banks. In the wake of this news, the Group will continue with even greater vigor in pursuing those initiatives that can make its business model even more efficient and modern, to face the new challenges of the market as protagonists”.