On June 27, 2016, UBI Banca SpA (UBI) presented its new strategic plan, which includes a series of initiatives on cost efficiency, revenue generation, and group structure streamlining, which have been introduced to target return on tangible equity of 10.6% by end-2020. The bank announced a series of one-off costs including extra loan loss provisions of €850 million leading to 6% higher nonperforming loans coverage or 35% pro forma as of March 2016. Although we expect these initiatives to result in UBI reporting a full year 2016 net loss, we consider the impact on its overall creditworthiness to be manageable. We are therefore affirming our 'BBB-/A-3' counterparty credit ratings on UBI Banca SpA. The outlook remains stable. On July 6,
