Strong franchise in Italy, the German State of Bavaria, Austria, Poland, and Central and Eastern Europe. Business and revenue diversification. Better coverage ratio through provisions on impaired loans in Italy than the average for domestic peers. Significant business exposure in Italy, where economic risk is higher than the average in peer countries. Weaker asset quality than peers', particularly in Italy, due to high stock of impaired loans. Weakened profitability metrics. Standard&Poor's Ratings Services' outlook on Italy-based UniCredit SpA (UniCredit) is negative, reflecting the possibility that we could lower the ratings if, all else remaining equal, we were to lower our ratings on the Republic of Italy (unsolicited BBB+/Negative/A-2). The ratings on UniCredit SpA cannot exceed those on Italy,
