...IDRs Based on Support: Fitch Ratings believes there is a moderate probability of support available from the Italian authorities for Banca Popolare di Milano (BPM). The Negative Outlook reflects Fitch's expectation that the sovereign's propensity to provide timely support will weaken once the EU's Bank Recovery and Resolution Directive (BRRD) is implemented with possible negative implications for the bank's Long-term IDR. Weak Corporate Governance: The bank's convoluted and suboptimal corporate governance represents the main constraint to its Viability Rating (VR), which reflects the standalone credit profile of BPM. Strengthened Capitalisation: BPM's end-1H14 Common Equity Tier 1 (CET1) ratio improved to 11.23% after a EUR500m capital increase in May 2014 and the subsequent removal of EUR8.1bn punitive risk weightings imposed by the regulator in 2011. BPM's capitalisation strengthened to a level that compares favourably with its direct domestic peers and improves the bank's position ahead...
