Coverage of the wealthiest regions in Italy; On-time implementation of the merger process between constituent banking groups Banca Popolare di Bergamo - Credito Varesino and Banca Popolare Commercio e Industria SCRL; and Adequate financial profile. Loan portfolio more exposed than that of peers to the weakening of the Italian corporate sector; Only adequate efficiency and low synergies from the merger, at least until year-end 2004; and Relatively weak capitalization. The ratings on Italy-based Banche Popolari Unite (BPU) reflect the group's strong business profile as the result of a good penetration in the wealthiest regions of Italy. The ratings also reflect an adequate financial profile, which is characterized by strong liquidity, good revenue-generating capacity, adequate--albeit weakened--asset quality, and relatively weak capitalization.
