UniCredit Bank GmbH

However, we think that HVB's relatively limited funding and financial dependency on affiliates and substantial prepositioned resources mean that it is likely to show greater resilience than UniCredit SpA under sustained stress. UniCredit group seeks to raise synergies and improve efficiencies as a European banking group. This initiative is consistent with the SPE resolution approach that seeks to keep the group's key operations functioning as a cohesive whole. In our view, the stable outlook on HVB reflects that it will post good financial results within the next 24 months. Its capitalization will remain strong, despite the deteriorated economic environment. We anticipate UniCredit group to downstream substantial subordinated bail-in-able capacity and expect that business and financial dependencies on affiliates will not

...HypoVereinsbank (HVB, UniCredit Bank GmbH) will benefit from strong capitalization and good profitability, while tail risks to capital from the lower-rated parent remain. Amid good profitability but moderate earnings retention, we expect HVB to maintain a high risk-adjusted capital (RAC) ratio of about 12% over the coming two years. While, beyond the annual local generally accepted accounting principles result, no distributions are planned over the coming years, we have seen extraordinary capital upstreams some years ago....

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