Fitch cuts Idr rating by bpm from BBB- to BB+, with a negative outlook. The agency communicated it, specifying that the negative outlook is in line with that of Italy. Instead, the Support Rating Floor (Srf) was confirmed at BB+, while the Viability rating (Vr) was also lowered, from bbb- to bb-, keeping it under observation for a possible new cut. In the wake of this decision, the Bpm share slipped by more than two points in Piazza Affari, suffering one of the worst drops in the entire Ftse Mib.
Fitchs argues that the IDR and SRF ratings are vulnerable to changes in the willingness or ability of the Italian authorities to provide timely support to the bank, and that the Italian state's ability to provide support depends on its creditworthiness, reflected in the long-term rating. hydr.
The Vr rating also continues to be under Fitch's scrutiny because Bpm "has not yet reached a lasting solution for future governance" and could thus "be cut by more than one step" in the presence of doubts about the Bank's ability to raise capital , which would reflect the increased risks to the continuity of the institution. A rating upgrade would be possible, concludes Fitch, "only with a strengthening of governance, higher levels of capital and an improvement in asset quality".
