Large and stable deposit base of a network of 145 small cooperative banks (the BCC members). Good franchise. Low efficiency. Weaker-than-average asset quality metrics. Relatively unsophisticated risk culture at BCC members level. The stable outlook on Iccrea Banca and its core subsidiary Iccrea Banca Impresa reflects our view that, after the consolidation of 145 local BCCs, the resulting group would be able to maintain a strong liquidity position, have limited reliance on wholesale funding, and keep its RAC ratio sustainably above 5%, while preserving its solid market position in the next 12 months. An upgrade could follow a strengthening of the group's combined solvency and risk profiles. For example, this could happen if we expected the RAC ratio to increase
