Fitch confirms confidence in the Italian banking system and revises ratings upwards of the two main groups: Understanding St. Paul e UnicreditThe action follows the recent upgrade of Italy's sovereign rating, which went from BBB to BBB+, placing both banks one step above Italy.
For Intesa Sanpaolo, Fitch has raised the Long-Term Senior Preferred Rating (unsecured) from “BBB” to “A-”, the Viability Rating from “bbb” to “a-” and the short-term deposit rating from “F2” to “F1”, confirming a stable outlookThe bank's long-term rating is thus placed "one notch above the Italian sovereign" (a measure by which agencies assess the relationship between sovereign strength and the stability of domestic banks). According to the agency, the upgrade reflects Intesa Sanpaolo's "exceptional position of strength" compared to domestic competitors, supported by product and revenue diversification and its "flight to quality" status.
Unicredit also benefits from the upgrade: the Long-Term IDR and Senior Preferred Rating reach “A-”, with stable outlook, also positioning themselves one notch above the Italian sovereign rating. Fitch highlights how the bank benefits from geographical diversification in performing or growing economies and from a very strong loss-absorbing capacity, elements that place it in a position of exceptional strength compared to national competitors. Viability Rating has been upgraded to “A-”, while the ratings for long-term deposits (Senior Non-Preferred, Tier 2, and Additional Tier 1) have been revised upward by one notch. The short-term rating rises to "F1," while the issuer rating remains affirmed at "F2."
