(Finance) – In the annual review, the rating agency DBRS Morningstar confirmed all ratings from Monte dei Paschi di Siena Bank, including the Long-Term Issuer Rating at “B (high)”, the Long-Term Senior Debt Rating at “B (high)” and the Long-Term Deposits Rating at “BB (low)”. L’outlook on all ratings remained stable.
“Although MPS returned to profits in 2021, we continue to view weak profitability as the earnings remain volatile and under pressure from the current environment – reads the DBRS report – As a result, cost efficiency remains weaker than its competitors, despite cost discipline and bank restructuring. However, we also recognize that profitability is under less pressure than in recent years, thanks to the substantial de-risking and the consequent lower supply requirements “.
“Despite the progress in the restructuring plan in terms of costs and asset qualitywe believe that the BMPS franchise has suffered, particularly from legacy conduct issues, which have led to greater litigation risks associated with previous capital increases, “it is added.