... Spa's Issuer Default Ratings (IDRs) and Viability Rating (VR) primarily reflect adequate capitalisation and leverage, which are commensurate with the bank's risk profile and are supported by sound internal capital generation, adequate asset quality by domestic standards and ample liquidity. Adequate Capitalisation and Leverage: Capital ratios are adequate given risk concentration in the bank's equity and credit exposures and its business mix, which includes some volatile activities. Leverage is low by international standards. The phased-in common equity Tier 1 (CET1) and the Fitch Core Capital (FCC) ratio were 12.3% and 16.1%, respectively, at end- 2016. The net impaired loans/FCC ratio was a low 5.2%, which compares adequately with levels at international and domestic peers. Strong Franchise: Mediobanca has strong franchises in Italian corporate and investment banking (CIB) and in consumer finance (through its specialised subsidiary Compass...
