Gruppo Bancario Cooperativo Iccrea

The stable outlook reflects our views that GBCI will maintain a balanced risk profile over the next 12 months. We forecast that GBCI's RAC ratio will be sustained above 7.0% over our 2022-2024 forecast horizon and expect any potential deterioration in the loan book amid weaker economic activity will be manageable. The outlook also reflects our opinion that the group will maintain strong liquidity and funding positions, even after the reimbursement of the targeted longer-term refinancing operations funds to the ECB. We could lower the rating on GBCI over the next 12 months if we anticipate the RAC ratio will fall consistently below 7.0%. This could stem from significantly weaker-than-expected profitability over 2022-2024 or risk-weighted assets (RWAs) increasing faster than

...S&P Global Ratings bases its ratings on the group's combined creditworthiness. Even though the Banche di Credito Cooperativo (BCCs) and Iccrea Banca are legally independent, they act as an integrated group. Since early 2019, the group has been supervised by the European Central Bank (ECB) under the name Gruppo Bancario Cooperativo Iccrea (GBCI). Our rating approach is therefore to first assign a group credit profile (GCP) to GBCI. We then use the GCP to determine the rating on Iccrea Banca, based on our view of its status as core to the group (see chart 1)....

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