DBRS Confirms Banco BPM’s EMTN Programme at BBB (low), Assigns Senior Non-Pref and Sub Ratings

DBRS confirmed Banco BPM SpA’s (or the Bank) Long-Term and Short-Term Senior Unsecured notes ratings at BBB (low)/R-2 (middle) issued under the Bank’s EUR 25 billion Euro Medium Term Note Programme (or the Programme). The ratings are in line with the Bank’s Long-Term Issuer Rating and Intrinsic Assessment (IA) of BBB (low).

Concurrently, DBRS assigned further ratings to the Programme. Senior Non-Preferred notes issued under the Programme will be rated BB (high), one notch below Banco BPM’s IA, and Subordinated notes issued under the Programme will be rated BB, two notches below Banco BPM’s IA. All ratings have a Negative trend. A full list of rating actions is included at the end of this press release.

RATING DRIVERS
The ratings are sensitive to any change in Banco BPM’s Intrinsic Assessment (IA) which is currently at BBB (low). Sustained improvement in risk profile and profitability supported by adequate capital buffers could contribute to positive rating implications. Deterioration in BPM’s asset quality and capital position could contribute to negative pressure on the IA.

Notes:
All figures are in Euros unless otherwise noted.

The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (July 2018). This can be found at: http://www.dbrs.com/about/methodologies

The sources of information used for this rating include Company reports and SNL Financial. DBRS considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

Generally, the conditions that lead to the assignment of a Negative or Positive Trend are resolved within a twelve month period. DBRS’s outlooks and ratings are under regular surveillance.

For further information on DBRS historical default rates published by the European Securities and Markets Authority (“ESMA”) in a central repository, see:
http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Ratings assigned by DBRS Ratings Limited are subject to EU and US regulations only.

Lead Analyst: Nicola De Caro, Senior Vice President – Global FIG
Rating Committee Chair: Ross Abercromby, Managing Director – Global FIG
Initial Rating Date: Jan 5, 2017
Most Recent Rating Update: Dec 15, 2017

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