Large and stable deposit base of Italy's Banche di Credito Cooperativo (large network of small cooperative banks - the BCC network). Core status of Iccrea Banca within the BCC network. BCC network's low profitability. BCC network's weaker-than-average asset quality metrics. Relatively unsophisticated risk culture at BCC level. The stable outlook on Iccrea Banca SpA reflects our view that the BCC network should be able to maintain high liquidity levels, limited reliance on wholesale funding, and a solid market position in the next 12 months. We also consider that the group will remain cohesive and committed to supporting Iccrea Banca. Moreover, we expect that--on the back of the recently approved cooperative banking sector reform--no meaningful division of the BCC system will
