Rating Actions On UniCredit?s German and Austrian Banks On Insulation From Parent After Review Of Resolution Approach

In our view, the UniCredit group now operates a de facto single-point-of-entry resolution strategy under which Germany-based UniCredit Bank AG (better known as HypoVereinsbank; HVB) and UniCredit Bank Austria AG (Bank Austria) have deeper funding linkage with ultimate parent UniCredit SpA than in the past. Nevertheless, given the banks' intrinsic strength and other supportive features, we still see HVB and Bank Austria as likely to withstand parental stress, and continue to rate them above UniCredit's group credit profile. For HVB, we expect resilient financial performance in the current economic environment and therefore revised our outlook on the bank to stable from negative. We affirmed our 'BBB+/A-2' issuer credit and 'A-/A-2' resolution counterparty ratings on HVB and Bank Austria, reflecting insulation

...- In our view, the UniCredit group now operates a de facto single-point-of-entry resolution strategy under which Germany-based UniCredit Bank AG (better known as HypoVereinsbank; HVB) and UniCredit Bank Austria AG (Bank Austria) have deeper funding linkage with ultimate parent UniCredit SpA than in the past. - Nevertheless, given the banks' intrinsic strength and other supportive features, we still see HVB and Bank Austria as likely to withstand parental stress, and continue to rate them above UniCredit's group credit profile. - For HVB, we expect resilient financial performance in the current economic environment and therefore revised our outlook on the bank to stable from negative. - We affirmed our '###+/A-2' issuer credit and 'A-/A-2' resolution counterparty ratings on HVB and Bank Austria, reflecting insulation from the parent. We also affirmed our ratings on all outstanding debt instruments of both banks. - The outlook on Bank Austria remains negative, given our view that industry...

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