...IDR Driven by Viability Rating: Banca Popolare di Vicenza (BPV)s IDRs are based on the banks intrinsic creditworthiness, as reflected in its Viability Rating (VR). Capitalisation, which is a key rating driver, improved in 2014 and will be strengthened further in the next three years. The ratings reflect the banks deteriorated asset quality and low reserves coverage. They also factor in the banks improved funding and liquidity profile. Capital at Risk: The EUR608m capital increase completed in August 2014 brought BPVs Fitch Core Capital (FCC) ratio to over 10%, in line with peers at the end of their re- capitalisations. However, unreserved impaired loans still account for around 100% of FCC, which Fitch Ratings views as high by both domestic and international standards. This is the result of a high level of impaired loans and low reserves coverage. Additional Capital Strengthening: BPV has planned an additional EUR600m of capital strengthening in the next three years, in the form of new...
