DBRS on March 13 upgraded the long- and short-term issuer ratings of Credito Valtellinese SpA to BB (high)/R-3 from BB/R-4.

The rating agency also upgraded the Italy-based lender's long- and short-term deposit ratings to BBB (low)/R-2 (middle), its long-term senior debt rating to BB (high) and its short-term debt rating to R-3. Creval's intrinsic assessment is now BB (high), while its support assessment remains at SA3.

The trend on all ratings is now stable.

DBRS said the upgrade takes into account Creval's significant progress in reducing its large stock of nonperforming exposures, primarily through disposals and NPE securitizations.

The upgrade also reflects the agency's view that Creval's strengthened capital ratios following its capital raise in March 2018 and the approval from the Italian central bank to use internal credit risk models puts the bank in a stronger position to fast-track plans to reduce its NPEs.