We believe the prospect of extraordinary government support for German banks is now uncertain in view of the country's well-advanced and effective resolution regime. We are therefore removing the two-notch uplift for government support that we had previously incorporated in the long-term counterparty credit rating on UniCredit Bank AG. We do not consider that UniCredit Bank AG is likely to increase its additional loss-absorbing capacity (ALAC) above our 5% threshold within a two-year projection period. We are lowering the long-term rating on UniCredit Bank AG to 'BBB' from 'A-', and affirming our 'A-2' short-term rating. We are removing these ratings from CreditWatch negative. The outlook is negative, reflecting our view of a one-in-three risk that the European Single Resolution Board
