February 6, 2017 / 3:08 PM / 10 months ago

Fitch Rates Italian Banks' New State-Guaranteed Notes 'BBB+'/'F2'

(The following statement was released by the rating agency) MILAN/LONDON, February 06 (Fitch) Fitch Ratings has assigned Banca Monte dei Paschi di Siena (MPS)'s, Banca Popolare di Vicenza's (Vicenza) and Veneto Banca's senior unsecured state-guaranteed notes a 'BBB+' long-term rating. Fitch has also assigned MPS's short-term state-guaranteed notes (IT0005240491) a 'F2' short-term rating. A full list of rating actions is available at the end of this rating action commentary. The notes are all unsubordinated, unsecured issuance of the three banks, benefiting from a direct, unconditional and irrevocable guarantee from the Republic of Italy (BBB+/Negative/F2), with maturities ranging from 360 days to three years. KEY RATING DRIVERS The notes' long- and short-term ratings are based on the Republic of Italy's direct, unconditional and irrevocable guarantees for the issues, which cover the notes' payments of both principal and interests. Italy's guarantees were issued by the Ministry of Economy and Finance under Law Decree n. 237 dated 23 December 2016. Our ratings are based on the expectation that the framework for state-guaranteed issuance is confirmed without changes upon conversion of the decree into law, which is to take place within 60 days from the decree's approval. The ratings reflect Fitch's expectation that Italy will honour the guarantees provided to the noteholders in a full and timely manner. The state guarantees rank pari passu with Italy's other unsecured and unguaranteed senior obligations. As a result, the notes' ratings are in line with Italy's 'BBB+' Long-Term Issuer Default Rating (IDR) and for those notes with original maturities below one year, 'F2' Short-Term IDR. RATING SENSITIVITIES The notes' long- and-short term ratings are sensitive to changes in Italy's IDRs. Any downgrade or upgrade of Italy's IDRs would be reflected on the notes' ratings. Our ratings are also sensitive to the conversion of the decree into law. Italy's rating was last reviewed on 21 October 2016 (see: Fitch Revises Italy's Outlook to Negative; Affirms at 'BBB+' available at www.fitchratings.com). Our next scheduled review of Italy's sovereign rating is due on 21 April 2017. The rating actions are as follows: MPS IT0005240509 long-term rating of 'BBB+' assigned IT0005240491 short-term rating of F2' assigned Veneto Banca IT0005239527, IT0005239535 long-term rating of 'BBB+' assigned Vicenza IT0005238859 long-term rating of 'BBB+' assigned Contact: Primary Analyst Francesca Vasciminno Senior Director +39 02 87 90 87 225 Fitch Italia S.p.A. Via Privata Maria Teresa, 8 20123 Milan Secondary Analysts Fabio Ianno (MPS) Director +44 20 3530 1232 Manuela Banfi (Vicenza) Associate Director +39 02 87 90 87 202 Valeria Pasto (Veneto Banca) Analyst +39 02 87 90 87 298 Committee Chairperson Claudia Nelson Senior Director +44 203 530 1191 Media Relations: Elaine Bailey, London, Tel: +44 203 530 1153, Email: elaine.bailey@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria Global Bank Rating Criteria (pub. 25 Nov 2016) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here _id=1018622 Solicitation Status here Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. 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