Moody's on March 22 assigned a Baa1 long-term issuer rating and A3/Prime-2 long- and short-term deposit ratings to Mediobanca - Banca di Credito Finanziario SpA, with the outlooks on the long-term issuer and deposit ratings at stable and negative, respectively.
The rating agency also assigned to the Italian bank "baa3" baseline and adjusted baseline credit assessments and Baa1(cr)/Prime-2(cr) long- and short-term counterparty risk assessments.
The baseline credit assessment reflects Mediobanca's good capitalization, with high buffers over prudential requirements, its sound and diversified profitability and high reliance on wholesale funding. Moody's added that the bank has high borrower concentration and moderate asset and market risk.
The long-term deposit and issuer ratings reflect the bank's baseline credit assessment. Moody's believes that the bank's debt or deposits are unlikely to benefit from government support.
The negative outlook on Mediobanca's long-term deposit rating mirrors that on the Italian government, while the stable outlook on the long-term issuer rating shows that the bank's main financials will remain broadly stable in the next 12 to 18 months and that the Italian and European economies will continue to grow at a moderate pace.