...Strong Capitalisation Is Key: UniCredit Bank AG's (HVB) IDRs and Viability Rating (VR) reflect the bank's standalone credit strength, especially its solid capitalisation. The bank's profile also benefits from its well-established domestic corporate and investment banking franchise. Its strong capitalisation compensates for the intrinsic earnings volatility of these activities. Increased Capital Fungibility Expected: The Negative Outlook on HVB's Long-Term IDR, reflects our expectation that capital and funding will become more fungible within the Unicredit S.p.A. (BBB+/Stable, UC) group. Fitch Ratings would likely align HVB's ratings with its parent's ratings when the agency believes that further material cross-border transfers of capital and liquidity to the parent are becoming more likely. Support Rating Reflects Institutional Support: HVB's Support Rating (SR) reflects support from its parent, which indicates a Long-Term rating floor based on support of 'BB'. We believe UC has a strong...
