...Diverse Business Model: Credito Emiliano S.p.A.'s (Credem) Issuer Default Ratings (IDRs) are driven by the bank's standalone profile, as captured by the Viability Rating (VR). The VR reflects its moderately healthy asset quality, sound capitalisation and resilient profitability thanks to a business model that is more diverse than that of many other Italian medium-sized banks and targets customers with strong credit quality. Resilient Profitability, Diversified Revenues: Profitability has been resilient because of diversified revenue sources. Net interest income (NII) has been under pressure from the very low interest rates in Europe and higher competition for good-quality retail and SME lending, which is only partly offset by falling funding costs. Fees and commissions generated from Credem's wealth-management and insurance businesses have been stable, partly compensating the pressure on NII. High Costs, Lower LICs: Costs are high at Credem, both as a proportion of revenues and of assets,...
