Our risk-adjusted capital (RAC) ratio for UniCredit Bank AG at year-end 2016, using our revised RAC criteria published July 20, 2017, is 10.1%, about 90 basis points lower than under the previous methodology. The decrease is mainly because of the incorporation of risks related to credit-value adjustments and central counterparty exposures, and our more conservative treatment of deferred tax assets. However, we continue to project UniCredit Bank's RAC ratio will remain above 10% until year-end 2018, owing to our expectation of dividend pay-outs equal to full net income, but only marginal growth in our risk-weighted assets metric over that period. We are affirming our 'BBB/A-2' ratings on UniCredit Bank and removing them from under criteria observation. The developing outlook indicates
