Italian UniCredit SpA 'BBB-/A-3' Ratings Affirmed After Presentation Of Strategic Plan; Outlook Stable

On Dec. 13, UniCredit SpA presented its 2019 strategic plan, which includes various actions aimed at strengthening its capital, profitability, and efficiency, and reducing its stock of nonperforming assets (NPAs). The plan includes a €13 billion rights issue, €1.7 billion in cost savings by 2019, €8.1 billion additional provisions on NPAs, followed by the disposal of €17.7 billion of NPAs in 2017. If executed, we expect these actions to have a positive impact on UniCredit's financial profile, though this is unlikely to be sufficient for us to rate the bank above the 'BBB-' long-term sovereign credit rating on Italy. We are therefore affirming the 'BBB-/A-3' ratings on UniCredit. The outlook remains stable, reflecting that on our long-term ratings on Italy.

...+ On Dec. 13, UniCredit SpA presented its 2019 strategic plan, which includes various actions aimed at strengthening its capital, profitability, and efficiency, and reducing its stock of nonperforming assets (NPAs). + The plan includes a 13 billion rights issue, 1.7 billion in cost savings by 2019, 8.1 billion additional provisions on NPAs, followed by the disposal of 17.7 billion of NPAs in 2017. + If executed, we expect these actions to have a positive impact on UniCredit's financial profile, though this is unlikely to be sufficient for us to rate the bank above the '###-' long-term sovereign credit rating on Italy. + We are therefore affirming the '###-/A-3' ratings on UniCredit. + The outlook remains stable, reflecting that on our long-term ratings on Italy. MILAN (S&P Global Ratings) Dec. 20, 2016--S&P Global Ratings affirmed its '###-/A-3' long- and short-term counterparty credit ratings on Italian bank UniCredit SpA. The outlook remains stable. The affirmation reflects our view that...

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