July 22, 2021, Moscow. The rating agency RAEX (“Expert RA”) has revised the credit rating of Banca Intesa according to a new methodology and assigned a rating at the level of ruA+. The rating has a stable forecast.
Previously, the bank had a rating at the level of ruA, also with a stable forecast.
According to the agency’s release, the upgrade in the rating is due to a change of methodology for assigning credit ratings to banks, effective from 14.07.21, in terms of the algorithm for applying support factors from owners. Banca Intesa is 100% owned by Intesa Sanpaolo Banking Group, the largest in Italy and the third largest in the eurozone by capitalization.
Taking into account the amount of financial support provided in the past and, if necessary, a possible support from the owner, the influence of the owner's support factor on the rating is assessed as strong.
The bank's rating is also based on a satisfactory assessment of market positions, an acceptable level of capital adequacy, adequate asset quality and corporate governance, as well as a strong liquid position.
“The rating’s upgrade is a recognition of the fact that in the conditions of the pandemic, together with our clients, we managed not only to increase the business, but also to strengthen the reliability and financial stability of the Bank,” said Oleg Dzhus, Member of the Management Board, and Director of the Treasury of Banca Intesa.
The RAEX release also notes that the COVID-19 pandemic did not have a significant negative impact on the quality of the loan portfolio of individuals and legal entities, as well as individual entrepreneurs. The share of non-performing loans of legal entities and individual entrepreneurs decreased, from June 1, 2020 to June 1, 2021, from 8.1% to 5.0%.