Fitch Places Senior Ratings of FCA Bank Under Criteria Observation for possible upgrade

Fitch Ratings has placed the preferred senior debt and pari-passu ranking senior unsecured debt of FCA Bank S.p.A. and FCA Capital Suisse "Under Criteria Observation" for possible upgrade to reflect the protection that could accrue to preferred senior debt from more junior bank resolution debt and equity buffers.

The rating actions follow the publication on 28 February of updated bank and non-bank financial institution rating criteria, which include changes to the way Fitch rates operating company subsidiaries (OpCo) of banking groups headed by bank holding companies (BHC) and to the way Fitch notches senior and junior debt ratings.





The updated criteria primarily reflect continuing developments in bank resolution, notably developments in bank resolution plans, the build-up of 'bail-in' debt buffers that protect more senior creditors and their implication for default risk and recovery prospects for different senior and junior liability classes and for bank and non-bank financial institution operating companies relative to BHC.

Ratings placed UCO will be reviewed and resolved as soon as practical and in any case within six months.

Fitch Release

10.03.2020

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