The Italian banking group UniCredit will launch a €4 billion capital increase for early 2010 to strengthen its capital position. We are affirming our 'A/A-1' ratings on UniCredit. The stable outlook generally reflects our opinion that UniCredit's diversified earnings stream and strengthened capital would cushion possible further deterioration of its balance sheet. On Oct. 1, 2009, Standard&Poor's Ratings Services affirmed its 'A/A-1' long- and short-term counterparty credit ratings on Italy-based UniCredit SpA. The outlook is stable. The affirmation follows UniCredit's announcement that it will launch a €4 billion capital increase in early 2010 to strengthen its capital. We take a positive view of UniCredit's more prudent stance toward capital, which the bank adopted at end-2008 when it decided
