...IDRs Reflect Standalone Profile: Banco di Desio e della Brianza's (Desio) IDRs are driven by its standalone credit fundamentals, as expressed by its Viability Rating (VR). The VR reflects the bank's fairly small franchise, acceptable capitalization, adequate funding and more resilient profitability than most peers. Asset quality has deteriorated since the acquisition of Banca Popolare di Spoleto (BPSpoleto), but remains better than the system average. The Stable Outlook reflects Fitch's expectations that the group's profitability will benefit from the acquisition of BPSpoleto in the medium term, as well as the normalisation in the operating environment in Italy after years of economic recession. Deteriorated Asset Quality: Desio's impaired loans reached 15.7% of gross loans at end- 1Q15, which is high internationally but still compares adequately with its domestic peers. BPSpoleto's legacy impaired loans were abundantly covered by reserves; the group's coverage of impaired loans stood 54%...
