UBI covereds expected to tighten upon rating upgrades
The three major rating agencies have upgraded UBI’s credit rating, to be in line with Intesa Sanpaolo’s as the latter's takeover of the former concludes. Market participants are expecting UBI’s covered bond spreads to tighten as a result.
Following the conclusion of the tender offer, S&P affirmed Intesa Sanpaolo’s credit ratings and upgraded UBI Banca by one notch to BBB, thereby homogenising the merged companies’ ratings.
Moody’s and Fitch have also recently upgraded UBI’s ratings to match that of its acquirer.“With the UBI upgrade, ...