BANCO BPM S.P.A.
Fitch Ratings has assigned
The notes qualify as Additional tier 1 regulatory capital.
All other issuer and debt ratings are unaffected.
Key Rating Drivers
The notes are rated four notches below BBPM's 'bbb-' Viability Rating (VR), comprising two notches each for loss severity and incremental non-performance risk. The latter reflects the instruments' fully discretionary interest payment.
The instruments' rating also reflects BBPM's comfortable headroom before mandatory coupon-omission points as reflected in its common equity Tier 1 ratio of 14.3% at
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
The notes would be downgraded if BBPM's VR is downgraded. The notes' rating could also be downgraded on an increase in notching from the bank's VR, which could arise if Fitch changes its assessment of their non-performance risk relative to the risk captured in the VR. This could reflect a 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 be upgraded if BBPM'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
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This 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 of the materiality and relevance of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.
RATING ACTIONS
Entity / Debt
Rating
junior subordinated
LT
B+
New 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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