Moody’s assigns illimity Bank Ba1

Moody’s Investors Service said it gave Ba1 long-term issuer and senior unsecured debt ratings to illimity Bank SpA. The agency also assigned a baseline credit assessment and adjusted BCA of ba3 and a subordinated debt rating of B1. The outlook is stable.

The Ba1 issuer and senior unsecured ratings reflect the very low loss-given failure resulting in two notches of uplift above the adjusted BCA, according to Moody's advanced loss given failure analysis. There is a low probability of government support owing to the small size of the bank, the agency said.

“The B1 subordinated debt rating reflects the high loss given failure on this tier 2 capital instrument resulting in one downward notch from the adjusted BCA of ba3 according to Moody's advanced LGF analysis.

In explaining the stable outlook, the agency said, “Moody's expects the bank to broadly maintain its asset quality, a sound capitalization supported by retained profits and a relatively good liquidity despite its expected commercial expansion.”

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