...Second-Tier Multi-Regional Bank: BPER Banca S.p.A.'s ratings reflect its sound second-tier multi-regional franchise in Italy, and its sufficiently diversified and relatively stable business model, which is skewed towards traditional commercial banking. Asset Quality Improves: BPER's asset quality is gradually improving helped by Italy's economic recovery and more effective credit controls. The ratio of impaired loans on gross loans will remain high by international comparison even after the planned EUR3 billion securitisations. Clean-up Drives Positive Outlook: The Positive Outlook reflects our expectation that BPER's financial profile will benefit from a planned material asset-quality clean-up over the next 18 to 24 months. Management is committed to achieve an impaired loan ratio of just above 13% at end-2018 from 19.6% at end-2017 mainly through securitisations. We view this plan as having limited execution risks. BPER had already completed about a quarter of planned impaired loans disposals...
