...IDRs Driven By Standalone Strength: Credito Emiliano S.p.A.`s (Credem) IDRs reflect the bank's healthy asset quality domestically, sound capitalisation and resilient profitability as captured by its Viability Rating (VR). The Stable Outlook reflects Fitch's expectations of continued sound financial performance and no material deterioration in asset quality, as well as the normalisation in the Italian economic environment after years of recession. Healthy Asset Quality Domestically: Credem's asset quality is the strongest among rated Italian banks, with impaired loans accounting for less than 6% of gross loans at end-1Q15. Coverage of impaired loans is acceptable at 54% and compares well with peers. Credem's good asset quality is the result of its conservative underwriting practices and prudent risk management, although the fairly fast loan growth that the bank has experienced in the last two years could increase the risk of future asset quality deterioration. Sound Capitalisation: Capital...
