Fitch Revises Banca Ifis Outlook to Negative On Riskier Business Profile

Fitch Ratings on Wednesday affirmed its long-term issuer default rating on Banca Ifis (IF.MI) at BB+ and revised the outlook to negative from stable. The rating agency attributed the outlook revision to recent risk increases in the Italian lender's business profile, profitability and capitalization. The increased risks follow Banca Ifis' acquisition of illimity Bank. Fitch also pointed out the execution risks related to Banca Ifis' plan to sell its non-performing loan investing and servicing business and increase its focus on small and medium enterprise lending as well as wealth management.