...OC Limits Rating: Banco di Desio e della Brianza (Desio) will publicly undertake to maintain an asset percentage (AP) of 75% (33.3% overcollateralisation (OC)). This supports timely payments on the covered bonds up to a `A' tested rating on a probability of default (PD) basis and is commensurate with a two-notch recovery uplift to `AA-'. However, this OC falls short of the protection to sustain the maximum achievable rating of `AA', corresponding to Fitch Ratings' Country Ceiling for Italian debt. Low Risk of Undercollateralisation: Fitch views the risk of undercollateralisation at the point of resolution for the Italian Obbligazioni Bancarie Garantite (OBG) to be low, as reflected in the two-notch Issuer Default Rating (IDR) uplift. This is based on the agency's assessment of the Italian legal framework and contractual safeguards to preserve OC. It also takes into account that the bank's `BBB-' IDR is driven by its Viability Rating (VR). Maturity Profile Drives PCU: The six-notch payment...
