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.
