RPT-Fitch assigns Intesa Sanpaolo Vita's subordinated debt 'BBB(EXP)' rating
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Sept 4 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has assigned Intesa Sanpaolo Vita's (ISV; BBB+/Negative) planned EUR500m subordinated debt issuance an expected 'BBB(EXP)' rating.
The final rating of the subordinated notes is contingent on the receipt of final documents conforming to information already received.
KEY RATING DRIVERS
The proposed subordinated notes have a five-year term and will pay a fixed rate of interest. The notes have no deferral features (ie a non-payment of a coupon would constitute a default), and their rating is therefore one notch below ISV's Issuer Default Rating, in accordance with Fitch's notching methodology. The planned issuance has received regulatory approval.
ISV is expected to use the proceeds for general corporate purposes and to optimise its own funds composition and - subject certain conditions to be met - that of Intesa Sanpaolo (ISP; BBB+/Negative), ISV's ultimate parent and the second-largest Italian bank by total assets.
The issue is expected to be classified as Upper Tier 2 notes for regulatory purposes and would therefore receive 100% capital credit in Fitch's analysis of ISV's capital adequacy. However, Fitch-calculated financial leverage would increase as a result of the issuance as Fitch would treat the notes as 100% debt in its assessment of leverage.
Any change to the rating of ISV is likely to result in a corresponding change of the rating of the planned subordinated debt.
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