Fitch Ratings has assigned Credito Emiliano S.p.A.'s (Credem, BBB/Stable/F3) EUR1 billion multi-currency commercial paper (MCCP) programme a short-term rating of 'F3'.

Key Rating Drivers

The MCCP rating is equalised with Credem's Short-Term Issuer Default Rating (IDR) of 'F3', reflecting our view that the default risk of the notes is equivalent to that of the bank, as expressed by the Short-Term IDR. The 'F3' Short-Term IDR is the baseline option for a 'BBB' Long-Term IDR because Credem's 'bbb' funding and liquidity score is not high enough to achieve the higher equivalent short-term rating.

Commercial paper issued under the programme is senior, unsecured, and ranks pari passu with all other senior preferred obligations of Credem.

Rating Sensitivities

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

The programme's rating would be downgraded if Credem's Long-Term IDR was downgraded by more than a notch to 'BB+' or below.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

The programme's rating could be upgraded if Credem's Short-Term IDR was upgraded, which would be contingent on an upgrade of Credem's Long-Term IDR or of the bank's funding and liquidity score to 'bbb+' or above.

The programme's rating is also sensitive to Credem's long-term senior preferred debt being notched up from the bank's Long-Term IDR to reflect lower vulnerability to default. In this case, the programme's rating would be mapped from the long-term senior preferred debt rating. An upgrade of the long-term senior preferred debt rating would require Credem to meet its resolution buffer requirements only with senior non-preferred senior non-preferred and more junior instruments, or the combined buffer of senior non-preferred and junior debt to sustainably exceed 10% of risk-weighted assets.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

RATING ACTIONS

Entity / Debt

Rating

Credito Emiliano S.p.A.

Senior preferred

ST

F3

New Rating

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VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

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