10. Apr 2017 Monitoring note  – Banks

New analysis on Intesa

Scope Ratings has updated its rating report on Intesa Sanpaolo SpA, rated A with Stable Outlook.

On 2 February 2017, Scope Ratings upgraded the Issuer Credit-Strength Rating (ICSR) of Intesa Sanpaolo SpA to A from A-, maintaining the Stable Outlook. The rating upgrade was related to forthcoming adjustments in creditor hierarchy related to the introductions of MREL-eligible debt and are in line with the most current version of Scope’s bank rating methodology (May 2016). The short-term rating is S-2, with Stable Outlook.

The ratings are driven by Intesa’s strong capital position and resilient profitability despite the challenging operating environment in Italy, where 82% of the loan portfolio is based. The group has been the leading retail and commercial bank in Italy since the merger of Intesa BCI and San Paolo IMI in 2007. Group earnings and asset quality have suffered from the weak domestic economic environment, but pre-provision profitability has been resilient and the group has remained profitable if Scope excludes large write-downs of goodwill in 2011 and 2013.

Although it has operations in Central and Eastern Europe, Intesa’s primarily domestic-based operations, combined with significant holdings in Italian sovereign debt, mean it is particularly exposed to market confidence in Italian banks and Italy in general.

Download the updated rating report.


Scope Ratings AG    Phone: +49 30 27891-0
Marco Troiano    m.troiano@scoperatings.com
Samuel Theodore    s.theodore@scoperatings.com
Oliver Müller    press@scopegroup.com