Moody's Downgrades Banca Ifis Following Bank of Italy Inspection

10:11 AM EDT, 10/05/2026 (MT Newswires) -- Moody's downgraded Italian lender Banca Ifis' (IF.MI) long-term deposit rating to Baa3 from Baa2 and issuer and senior unsecured debt ratings to Ba1 from Baa3, ending a review for downgrade that began in July. The cuts follow a Bank of Italy inspection in the first half of 2026 that uncovered 170 million euros in additional loan losses, reclassified 200 million euros of loans as nonperforming, and flagged weaknesses in the company's governance, compliance and risk management. The rating agency said the central bank's decision to raise Banca Ifis' minimum capital requirements will reduce the bank's capital headroom above the minimum requirement. The outlook on the ratings is negative. Moody's said rising funding costs, bad-loan disposal losses, and transition risks tied to the bank's turnaround will strain profits over the next 12 to 18 months.