On July 3, 2002, Standard&Poor's raised its long-term counterparty credit rating on UniCredito Italiano SpA (UniCredito) to double-'A'-minus from single-'A'-plus and its short-term counterparty credit rating to 'A-1'-plus from 'A-1'. The outlook is stable. The ratings upgrade reflected the low risk profile and superior earnings capacity maintained by the group in a difficult operating environment, in spite of the challenges inherent in its expansion strategy in Eastern Europe. The ratings on UniCredito reflect the group's strong market position in Italy, credible strategy, and sound financial profile. Although the group's expansion in emerging markets represents moves into banking systems that are characterized by much higher economic and industry risk than in the Italian system, Standard&Poor's acknowledges the
