On May 21, 2007, Standard&Poor's Ratings Services affirmed its 'A+' long-term and 'A-1' short-term counterparty credit ratings on Italy-based bank UniCredito Italiano SpA and its subsidiaries (see list below). The outlook on UniCredito is stable. The rating actions follow the announcement that the boards of UniCredito and Capitalia SpA (A/Watch Pos/A-1) have approved the merger of the two entities, involving the incorporation of Capitalia into UniCredito. The ratings affirmations reflect the transaction's sound strategic rationale, and our expectation that Capitalia will be strongly integrated into UniCredito. The incorporation would significantly strengthen UniCredito's presence in the profitable Italian market, where it would become the second-largest bank, after Intesa Sanpaolo SpA (AA-/Stable/A-1+). Capitalia's financial profile has significantly strengthened during the
