Research Update: Iccrea Banca SpA Upgraded On Improving Capitalization And Assigned Resolution Counterparty Rating; Outlook Stable

We forecast Gruppo Bancario Cooperativo Iccrea (GBCI)'s capitalization will continue strengthening, with the risk-adjusted capital ratio sustainably exceeding 7.0% in 2022 and thereafter, amid higher-than-anticipated fully retained earnings. GBCI received a final minimum requirement for own funds and eligible liabilities decision from the Single Resolution Board in 2021, with the preferred resolution strategy being an open bank bail-in. We raised the long-term issuer credit rating on GBCI's parent Iccrea Banca SpA to 'BB+' from 'BB', affirmed the 'B' short-term rating, and assigned our 'BBB/A-2' long- and short-term resolution counterparty ratings. The stable outlook reflects GBCI's balanced risk profile and stable funding base, as well as our expectations that it can withstand uncertain economic prospects in Italy with a manageable potential

...- We forecast Gruppo Bancario Cooperativo Iccrea (GBCI)'s capitalization will continue strengthening, with the risk-adjusted capital ratio sustainably exceeding 7.0% in 2022 and thereafter, amid higher-than-anticipated fully retained earnings. - GBCI received a final minimum requirement for own funds and eligible liabilities decision from the Single Resolution Board in 2021, with the preferred resolution strategy being an open bank bail-in. - We raised the long-term issuer credit rating on GBCI's parent Iccrea Banca SpA to '##+' from '##', affirmed the 'B' short-term rating, and assigned our '###/A-2' long- and short-term resolution counterparty ratings. - The stable outlook reflects GBCI's balanced risk profile and stable funding base, as well as our expectations that it can withstand uncertain economic prospects in Italy with a manageable potential deterioration in asset quality and capitalization....

Research Update