Corporate Credit Rating for FINECOBANK BANCA FINECO S.P.A.: A2- (First Issuance)

modefinance published on its CRA website the Corporate Credit Rating (First Issuance) of FINECOBANK BANCA FINECO S.P.A. and the rating assigned to the entity is A2- (First Issuance). 

It is a very good bank with very good capability of repaying financial obligations.

The reasons that have driven this decision are:

• The overall financial and economic situation of Fineco Bank S.p.A. is good and constant above all the considered period.
• The entity’s assets portfolio is mainly composed of loans and advances to banks, net loans and advances to customers represent only 12% of total earning assets, this is a good point in this economic period: first of all because of the low level of interest rates; secondly the lending market is facing several issued with the non performing loans; and finally, the dynamics described above made other types of interest-earning assets more attractive. Taking into account the 2018 annual financial figures, Fineco Bank’s position confirms how it is one of the most profitable banks in Italy.
• The weight of net commissions on the operating revenues (48,19%) registered a relevant amount compared to net interest income on operating revenues (47,7%), that highlights the bank's ability to diversify its assets’ portfolio.
• The Group of Fineco is owned by Unicredit S.p.A., a well experienced, renown and important bank of Italy. The CEO is a prominent key figure in bank management, and it is considered, one of the best banking CEO for Small & Mid-Cap companies in Europe.
• Fineco Bank overperformed the peer group in all the considered areas: the rated entity recorded very good values in terms of size, profitability, and asset quality.
• In the last years, new regulations have been released as the IFRS 9 (financial instruments) and a new parliamentary commission and supervision on the bank and financial institutions in Italy. Both could impact negatively on Fineco. But an encouraging sign for financial institutions in Italy is that the interest rates on interbank operations are unchanged.
• The future effects of the political risk, mainly arose by the uncertain results of the upcoming European parliament’s elections, and the macroeconomic conditions, due to the low resilience of Italian economy, could have a negative impact on the bank.

The present Corporate Credit rating is issued by modefinance under EU Regulation 1060/2009 and following amendments.

The present rating is unsolicited: the rated entity and/or related third parties have not participated in the rating process and modefinance has no access to accounts or other relevant internal documents of the rated entity and/or related third parties. Solicited and unsolicited ratings issued by modefinance are of comparable quality, as the solicitation status has no effect on methodologies used. More comprehensive information on modefinance Corporate Credit Ratings are available at this link.

The present Corporate Credit Rating is issued on MORE Score Methodology for banks 1.0 and Rating Methodology 1.0.

A comprehensive description of both methodologies, as well as information on modefinance Rating Scale and Mappings, is available at this link.

For information on historical default rates of modefinance Corporate Credit Ratings please refer to ESMA Central Repository and ESMA European Rating Platform.

The quality of the information available on the rated entity and used to determine the present rating was judged by modefinance as satisfactory. Please note that modefinance, however, is not in a position to guarantee the accuracy of that information. As such, modefinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.The present credit rating was notified to the rated entity in order to identify potential factual errors, as prescribed by the CRA Regulation.

The Rated Entity or Related Third Party has not purchased ancillary services from modefinance. The rating action issued by modefinance was performed independently. The analysts, members of the rating team involved in the process, modefinance Srl and its members and shareholders do not have any conflicts of interest in relation to the Rated Entity and/or Related Third Parties. If in the future a potential conflict of interest is identified in relation to the persons reported above, modefinance Ratings will provide the appropriate information and if necessary the rating will be withdrawn.

The present Credit Rating is an opinion of the general creditworthiness that modefinance issues on the rated entity, and should be relied upon to a limited degree. The issued rating is subject to an ongoing monitoring until withdrawal.

Eva Vocci – Head Analyst
eva.vocci@modefinance.com
+39 040 3756740

Christian Raimondo – Assistant Analyst
christian.raimondo@modefinance.com
+39 040 3756740

Pinar Dilek – Responsible for Rating Approval
pinar.dilek@modefinance.com
+39 040 3756740