The ratings on UniCredito Italiano SpA reflect the bank's strong domestic market position, credible strategy, and sound financial profile. The bank has maintained a low risk profile and strong earnings capacity in a difficult operating environment, despite the challenges related to its expansion strategy in Eastern Europe. Among the top three banks in Italy by total assets, UniCredito has an excellent business position. Its business profile, dominated by retail banking in its home market, has a strong local franchise in three of the four main northern Italian regions. The group has selectively strengthened its wholesale banking operations through the development of niche markets in derivatives sales and investment banking with the UniCredit Banca Mobiliare (UBM) unit, and through the acquisition
