UniCredit sells 6.06bn euros in bad loans via securitisation deal

• It had assigned final ratings to 1.32 billion euros in debt notes issued by the Prisma securitisation vehicle to which UniCredit transferred the bad loans on Oct. 11.
• The notes have been structured according to the latest requirements for the 'GACS' guarantee which banks can purchase from the state to wrap senior notes in bad loan securitisation deals.

MILAN: UniCredit has sold 6.06 billion euros ($6.8 billion) in bad loans to a securitisation vehicle, Scope Ratings said, as Italy's biggest bank works to meet stepped-up soured debt reduction goals this year.

In a statement on Monday, Scope Ratings said it had assigned final ratings to 1.32 billion euros in debt notes issued by the Prisma securitisation vehicle to which UniCredit transferred the bad loans on Oct. 11.

The 1.2 billion euro senior tranche received a 'BBB+' rating. The notes have been structured according to the latest requirements for the 'GACS' guarantee which banks can purchase from the state to wrap senior notes in bad loan securitisation deals, Scope said, indicating UniCredit may tap the scheme.

The portfolio comprises mostly secured loans, mainly home mortgages. Sources had told Reuters earlier this month the bank was preparing to shed some 5 billion euros in soured property loans.

According to Reuters calculations, the bad loans were transferred to the vehicle at 21.8% of their nominal value.