The ratings on Istituto Centrale delle Banche Popolari Italiane SpA (ICBPI) reflect its central role in providing essential services to a large group of Italian banks, mainly Banche Popolari (cooperative banks). Strong capital support from its shareholders, low credit risk, and excess funding from payment services activities also support the ratings. The factors offsetting these credit strengths are the bank's limited revenue diversification, a high fixed-cost base, and the potential for losses from operational risk in the interbank and credit card businesses. This is mitigated, however, by a good track record of marginal losses. The long-term counterparty credit rating incorporates one notch of uplift above ICBPI's stand-alone credit profile, reflecting the strong commitment and support from ICBPI's shareholders--a large group
