UBI covereds expected to tighten upon rating upgrades

UBIBanca_PA_575x375
By David Freitas
14 Aug 2020

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, ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial