Large and stable deposit base of a network of 136 small cooperative banks (the BCC members). Good franchise. Low efficiency and modest revenue diversification. Weaker-than-average asset quality metrics, which are vulnerable to deteriorating economic conditions. Historically unsophisticated risk culture at BCC members' level. The negative outlook on Gruppo Bancario Cooperativo Iccrea (GBCI) reflects S&P Global Ratings' view that the economic contraction in the areas in which the banks operate could impair the group's overall asset quality and capitalization beyond our expectations over the next 12-18 months. We would most likely lower the ratings over the next 12 months if economic and operating conditions in Italy deteriorated further, because either the downturn is deeper and longer, or the recovery weaker, than
