DBRS confirms the ratings of the Cassa Centrale Group and upgrades the trend to positive
Constant progress in the risk profile through a reduction of stock of non-performing exposure, strong coverage levels and ample capital buffers have formed the basis for the improvement in the rating trend assigned by Morningstar DBRS .
The strategic initiatives aimed at increasing efficiency have also played a contributing role in the decision.
Trento, 31.01.2024 – In its annual due diligence process, the rating agency Morningstar DBRS has confirmed all the ratings attributed to the Cassa Centrale Group (“Group”), including its Long-Term Issuer Rating of BBB (low), while revising the trend to positive from stable.
The improvement in the trend reflects the effort of the Group in monitoring its risk exposure through a reduction in the stock of non-performing loans coupled with significant coverage levels and moderate non-performing inflows. Further, the implementation of the strategic initiatives provides a solid foundation against possible headwinds and supports the growth in profitability.
The other key factors in attributing the ratings, such as a large and diversified funding base with a strong Liquidity Coverage Ratio and Net Stable Funding Ratio of 255% and 156% respectively as of June 2023, excellent capitalization levels (CET1 of 23.7% fully loaded as of September 2023), have remained solid throughout the assessment period.
Below is a summary of the ratings attributed by DBRS:
|
Debt rated |
Rating |
Trend |
|
Long-Term Issuer Rating |
BBB (low) |
Positive |
|
Short-Term Issuer Rating |
R-2 (middle) |
Positive |
|
Long-Term Senior Debt |
BBB (low) |
Positive |
|
Short-Term Debt |
R-2 (middle) |
Positive |
|
Long-Term Deposits |
BBB |
Positive |
|
Short-Term Deposits |
R-2 (high) |
Positive |