Research Update: Italy-Based Mediobanca's 'A/A-1' Ratings Placed On Watch Negative Following Sovereign Action Dec 11
- Language: English
- Published: December 2011
Strong domestic franchise sustained by successful organic growth. Adequate capitalization. Satisfactory asset quality ratios. Funding sources more concentrated than peers'. Large equity portfolio that exposes the bank to stock market fluctuations. High asset concentration in Italy. The negative outlook reflects the possibility that Standard & Poor's Ratings Services could lower the ratings on Italy-based Mediobanca SpA if we lower our ratings on the Republic of Italy or we see further weakening in the domestic economy and the banking industry. We would also consider lowering the ratings if we considered that our forecast risk-adjusted capital (RAC) ratio for the bank and funding access were likely to weaken substantially. Under our base-line scenario, we anticipate that Mediobanca's RAC before diversification adjustments should...
Companies mentioned in this report are:
- Mediobanca SpA
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