Strong competitive position in its domestic market, including retail roots in Italy's most wealthy regions; Strong core earnings and efficiency; Sound balance sheet, characterized by satisfactory capital, liquidity, and asset quality positions; and Credible strategy, with strong track record of management. Revenue composition, with a relatively high proportion of income from volatile derivatives sales business; and Exposure to Eastern European banking markets that bears higher economic and industry risks. 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
