Fitch raises Intesa Sanpaolo's ratings by two notches to A- with Stable Outlook

Core Viewpoint - Fitch has upgraded Intesa Sanpaolo's credit rating by two notches to A-, marking the first time the Group is rated above Italy's sovereign rating, indicating its exceptional strength in the banking sector [2][3]. Group 1: Credit Rating Upgrade - The Long-Term Issuer Default Rating was lifted from BBB to A- and the Viability Rating from bbb to a- [2]. - This upgrade signifies that Intesa Sanpaolo is recognized as a strong performer relative to its domestic peers and European banks [3]. Group 2: Business Model and Profitability - Fitch highlights Intesa Sanpaolo's diversified business model, strong profitability, and capital flexibility as key strengths [3]. - The bank is expected to maintain profitability above the average of large European banks in the coming years [3]. Group 3: Resilience and Market Position - Intesa Sanpaolo is viewed as a safe haven during sovereign stress, with resilient performance anticipated even as interest rates decline [3]. - The bank's dominant domestic franchise and diversified products are expected to mitigate pressures during severe stress on the Italian sovereign [3]. Group 4: Management and Strategy - The upgrade reflects the strength of management's execution and the constructive dialogue maintained with Fitch over the past year [3]. - It serves as a validation of Intesa Sanpaolo's strategy focused on resilience, profitability, and diversification, positioning it among Europe's top-tier banks while ensuring strong shareholder returns [3].