(Finance) – Fitch Ratings has improved the ratings of Banca Monte dei Paschi di Siena with an increase of 1 notch, bringing the Long-Term Issuer Default Rating (IDR) to “BB+” from “BB”, and the Viability Rating (VR) to “bb+” from “bb”.outlook And “Positive“.
The upgrade reflects MPS’s progress in restoring its standalone credit profile following the completion of a ten-year restructuring, particularly improvements in internal capital generation and company profile. The bank has demonstrated its ability to maintain a fairly diversified business model, which has supported revenues while reducing legal and credit risks.
Fitch also expects MPS to maintain an improved capitalization and financing and liquidity profile, continuing to reduce its non-performing loan ratio higher than the industry average.
The positive outlook reflects a potential rating upgrade if MPS consolidates the improvements achieved so far and maintains them in a lower interest rate environment.