BPER BANCA S.P.A.
Fitch Ratings has assigned
The assignment of a final rating is contingent on the receipt of final documents conforming to the information that Fitch has already received.
Key Rating Drivers
BPER's AT1 notes are rated four notches below its 'bbb-' Viability Rating (VR), comprising two notches for poor recovery prospects and two notches for incremental non-performance risk relative to the anchor VR given their fully discretionary, non-cumulative coupons. The notching is in line with Fitch's baseline notching for AT1 instruments.
Fitch has not applied additional notching for incremental non-performance risk as the bank operates with comfortable headroom above its mandatory coupon-omission trigger. At
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
The notes would likely be downgraded if BPER's VR is downgraded. The rating could also be downgraded if non-performance risk increases relative to the risk captured in the bank's VR. This could reflect an unfavourable change in capital management or flexibility, or an unexpected decline in capital buffers over regulatory requirements, for example.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
The notes would likely be upgraded if BPER's VR is upgraded.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
RATING ACTIONS
Entity / Debt
Rating
junior subordinated
LT
B+(EXP)
Expected Rating
Page
of 1
VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
PARTICIPATION STATUS
The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.
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