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Fitch Rates Italian Banks' New State-Guaranteed Notes 'BBB+'/'F2'
February 6, 2017 / 3:12 PM / a year 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 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: Additional information is available on 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. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch's factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch's ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided "as is" without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001

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