Dominant franchise in wealthy northern Italy. Conservative risk management and strategy. Lower-than-system-average asset quality deterioration. Moderate capital position. Modest earnings capacity. Relatively low coverage of nonperforming assets. Standard&Poor's Ratings Services' outlook on Italy- based Unione di Banche Italiane Scpa (UBI) is negative, reflecting the possibility that we could lower the ratings if we anticipate that UBI's internal capital generation over the next few quarters will not be sufficient to maintain our RAC ratio before diversification adjustments sustainably above 5%. Higher-than-expected pressures on UBI's already modest profitability could negatively affect our view of its ability to sustain a "moderate" capital position. We do not currently expect to revise the outlook on UBI to stable. However, we could do so
