...Parent Support Drives IDRs: Unipol Banca S.p.A.'s Issuer Default Ratings (IDRs) reflect Fitch Ratings' view that there is a moderate probability that support would be made available from its ultimate parent company Unipol Gruppo SpA's (UG, BBB/Stable), if needed. We have rated Unipol Banca's Long-Term IDR two notches below UG's to reflect our support expectation. Fitch considers the EUR900 million capital injection completed in July 2017 as evidence of UG's propensity to support its bank subsidiary. Limited Strategic Relevance: Unipol Banca is of limited strategic relevance to the group's overwhelmingly insurance activities. Synergies developed have been weak and the bank's weak performance record has been a drag for UG. Fitch believes that UG will continue to evaluate strategic options for its bank subsidiary and its recently completed restructuring may make it more attractive as a potential merger partner with other domestic banks. Improved Financial Metrics: The Viability Rating (VR)...
