Banca Monte dei Paschi di Siena has announced that the rating agency Fitch Ratings has improved its ratings, bringing the Long-Term Issuer Default Rating (‘IDR’) to ‘B+’ from ‘B’ and the Viability Rating (VR) to ‘B+’ from ‘B’. The outlook improves from ‘evolving’ to ‘stable’.
Fitch’s upgrade, reads the note from the Sienese bank, “reflects the strengthening of the Bank’s capitalization following the 2.5 billion euro capital increase completed in November 2022, which replenished adequate capital buffers with respect to the requirements regulations, and provides the Bank with the necessary resources to complete
its restructuring plan, which also provides for a reduction in costs and major investments. The rating improvement also takes into account the reduction in the stock of non-performing loans and a lower impact on the capital of the portion not covered by the funds, thanks to the completion of the clean-up”.
Mps has announced that “Fitch Ratings expects that the reduction of costs together with the rise in rates will lead to higher and more sustainable levels of profitability, more than offsetting the impact of the expected deterioration of the
operational context in Italy in 2023″.