Fitch’s improvement in MPS’s rating
After a positive start, the MPS stock rose slightly by 0.10% at Piazza Affari. Last Friday, with markets closed, the bank announced that Fitch Ratings had improved its rating, bringing the Long-Term Issuer Default Rating (IDR) to ‘BB+’ from ‘BB’ and the Viability Rating (VR) to ‘bb+’ from ‘bb’. This upgrade is significant and reflects improvements in the ability to generate capital and in the bank’s risk profile.
Impact of the upgrade on the market
The improvement in the rating comes at a crucial moment, in view of the publication of the accounts for the third quarter, scheduled for November 7. According to Fitch, the upgrade is the result of good execution of strategic initiatives and a diversified business model that has contributed to good revenue performance. The bank has demonstrated that it knows how to maintain effective cost management, which has led to a significant improvement in profitability
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Future prospects and stability
Fitch also pointed out that the increase in ratings considers capital levels higher than the industry average and the stability of the deposit base. The outlook changed to positive, suggesting that there is potential room for further improvement in the future. This is an encouraging sign for investors, who are looking forward to the bank’s financial results
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