On Dec. 5, 2011, we placed the long- and short-term sovereign credit ratings on the Republic of Italy on CreditWatch with negative implications. As a result, we are placing our 'A-' long-term rating on Unione di Banche Italiane (UBI) on CreditWatch with negative implications. The negative CreditWatch placement reflects our view that the possibility of a sovereign downgrade, and a worsening of UBI's SACP, could have a negative impact on the ratings on UBI. Under our revised bank criteria (published on Nov. 9, 2011), the ratings on UBI reflect its 'bbb+' anchor, its strong business position, moderate capital and earnings, strong risk position, average funding, and adequate liquidity. We expect to resolve the CreditWatch placement on UBI within four weeks
