The ratings on UniCredito Italiano SpA reflect the group's strong domestic market position, 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 expansion strategy in Eastern Europe. Although this expansion exposes Unicredito to much higher economic and industry risk than that seen in the Italian system, Standard&Poor's acknowledges the positive results achieved so far, particularly at Bank Pekao S.A. of Poland. Furthermore, given the effective "hands-on" approach adopted by UniCredito in its acquisition, integration, and restructuring of leading local banks, and the targets set by management in this area, these investments are not expected to weaken the group's overall
