The ratings on UniCredito Italiano SpA reflect the group's strong market position in Italy, credible strategy, and sound financial profile. UniCredito has maintained a low risk profile and superior earnings capacity in a difficult operating environment, despite the challenges inherent in its Eastern Europe expansion strategy. Although this expansion exposes Unicredito to much higher economic and industry risk than the Italian system, Standard&Poor's acknowledges the positive results achieved so far, particularly at Bank Pekao S.A. Furthermore, given the effective "hands-on" approach adopted by UniCredito in its acquisition, integration, and restructuring of leading local banks in Poland, Croatia, Slovakia, and Bulgaria, and the targets set by management in this area, these investments are not expected to weaken the group's
