...Diversified and Stable Business Model: Credito Emiliano S.p.A.'s (Credem) Issuer Default Ratings (IDRs) and Viability Rating (VR) reflect its diversified and stable business model, which has to date resulted in a more resilient profitability and healthier asset quality than its Italian peers. Resilient Profitability, Diversified Revenues: Profitability has been resilient because of diversified revenue sources. Stable fees and commissions, and income generated from the bank's wealth management and insurance businesses provide a cushion for Credem against the impact of low interest rates on profitability and from competition for good-quality retail and SME clients. Healthy Asset Quality: Credem's asset quality has remained relatively healthy because of strong underwriting standards and low single-name and industry concentration. Its impaired loans/gross loans ratio of below 6% at end-1H17 was also the result of small amounts of write- offs and sales every year. High Costs, Low LICs: Investments...
