Fitch downgrades Iccrea Banca to BB+

Fitch Ratings said it downgraded Iccrea Banca's and its main subsidiary Iccrea BancaImpresa's (IBI) long-term issuer default ratings to BB+ from BBB- and viability ratings to bb+ from bbb-.

The outlooks are stable.

Fitch said the downgrade primarily reflects its view that the group's asset quality is weak and unlikely to improve materially in 2018.

The agency also believes that the group's capitalization will remain under pressure from large unreserved impaired loans.

Under the reform of the mutual banking sector in Italy, which is planned to be completed by end-2018, Iccrea Banca will become the parent of one of the new banking groups, including a large number of mutual banks, Fitch noted.

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