Franchise strength in Italy, the German State of Bavaria, Austria, and some countries in Central and Eastern Europe (CEE) Business and earnings diversification Good loss absorption capacity thanks to adequate revenue generation and strengthened cost control High vulnerability to current difficult economic and operating environment, due to rapid expansion in the past few years both in Western Europe and in CEE and Commonwealth of Independent States countries Weaker asset quality than peers' Exposure to market risk and to earnings volatility in market and investment banking activities The ratings on Italy-based UniCredit SpA reflect a balancing of Standard&Poor's Ratings Services' expectation of a weaker credit and financial performance with our view of the bank's high business and earnings diversification
