Scope Ratings has updated its issuer rating report on Istituto Bancario del Lavoro (IBL).

The Stable Outlook reflects Scope’s view that IBL will be able to mitigate margin pressure from rising funding costs.

Scope Ratings has updated its analytical report on IBL, rated BBB with a Stable Outlook.

The Stable Outlook reflects the balance of risks and opportunities associated with the new strategic direction.

The Stable Outlook reflects the bank's business model resilience in economic downturns and solid profitability.

The short-term rating has a Stable Outlook.

The report details the rating drivers and change drivers, following the affirmation of the BBB rating on July 21, with stable outlook.

According to Scope, IBL is well-placed to withstand the impacts of the Covid-19 recession due to the low-risk characteristics of its core business.

The rating was last affirmed on 12 July 2019, when the Outlook was changed to Stable from Negative.

The Outlook change applies to the issuer ratings and other long-term ratings of Intesa, UniCredit and IBL. Short-term ratings have been affirmed with Stable Outlook.