On April 2, 2007, Standard&Poor's Ratings Services affirmed its 'A/A-1' long- and short-term counterparty credit ratings on Italy-based Banche Popolari Unite (BPU), now renamed Unione di Banche Italiane Scpa (UBI Banca). The outlook is positive. At the same time, the 'A/A-1' long- and short-term counterparty credit ratings on Banca Lombarda SpA were withdrawn. The rating actions, which were anticipated in our March 5, 2007, research update, follow the merger of BPU with Banca Lombarda, effective yesterday. The ratings on UBI Banca reflect its strong northern Italian franchise and sound financial profile based on satisfactory operating performance and moderate cost of credit risk. The ratings on the bank are constrained, however, by potential risks derived from a large exposure
