Today Fitch Ratings (Fitch), despite a recent revision of estimates on Italian GDP, which is expected to contract by 2% in 2020 before recovering in 2021, affirmed Credito Emiliano’s (Credem) Long-Term Issuer Default Rating (IDR) at ‘BBB’ and Viability Rating (VR) at ‘bbb’. The outlook remained Negative, in line with the Sovereign rating.
The revision of Italian GDP estimates has led the agency to change its risk considerations on the banking credit profiles that were skewed to the downside. Nevertheless, with regards to Credem, Fitch highlighted the bank’s relative position of strength thanks to its risk appetite and prudent management stance, which resulted in asset quality remaining consistently better than peers through the cycle and adequate capitalization. Moreover, Fitch stated that Credem’s diversified and stable business model has enabled the Group to perform a greater earnings stability.