On March 5, 2007, Standard&Poor's Ratings Services raised its short- and long-term counterparty credit ratings on Italian bank Banche Popolari Unite (BPU) to 'A/A-1' from 'A-/A-2'. The outlook remains positive. The upgrade reflects a strengthening in BPU's profitability and core capital base in the past two years. It also takes into account shareholder approval, at general meetings March 3, 2007, of the planned merger of BPU and Banca Lombarda SpA (A/Positive/A-1), which will give birth to an important national banking player. Effective April 1, 2007, Banca Lombarda will merge into BPU, which will be renamed Unione di Banche Italiane ScpA (UBI). At the same date, the short- and long-term counterparty credit ratings on Banca Lombarda will be withdrawn.
