Strong capital position. Sound franchise in German corporate banking Expected to have a separate resolution process to that of Italian parent UniCredit SpA, supporting a higher rating. Tail risk from strategic, financial, and operational interaction with the lower-rated UniCredit Group, which also results in downside risk to our capital projection. Concentration in its corporate credit portfolio and complexity in its credit market-related business. Business-flow volatility inherent in its investment banking activity. The negative outlook indicates that we could lower our ratings on UniCredit Bank over the next 24 months, once the resolution strategy for UniCredit group, including the size and positioning of bail-in buffers, becomes clear. We could also lower the ratings if increased economic or industry risks in Germany
