A recent retroactive German law change has significantly increased UniCredit Bank AG's additional loss-absorbing capacity, which could protect more-senior creditors in a resolution scenario. However, we continue to see uncertainties regarding the resolution strategy for cross-border group UniCredit and, within it, UniCredit Bank. We are affirming our 'BBB/A-2' ratings on UniCredit Bank and removing the long-term rating from CreditWatch with positive implications. The developing outlook indicates that we could affirm, raise, or lower our ratings on the bank, depending on the resolution strategy decided for UniCredit Group. We are affirming our 'BBB' ratings on instruments we continue to view as senior unsecured debt, lowering to 'BBB-' from 'BBB' our ratings on UniCredit Bank's debt instruments we have reclassified as senior
