Systemically important bank based on franchise strength in Italy, Austria, Bavaria, and some Central and Eastern European countries Strong business and geographic diversification Good profitability, particularly in Italy and Central and Eastern Europe Good integration track record Well diversified funding Increased business risk due to accelerated pace of growth since 2005 Complex integration and turning around of banks operating in a variety of regulatory and economic environments Structurally weaker asset quality than peers' Only adequate capital ratios Some appetite for market risk, related to market and investment banking activity The ratings on Italy-based UniCredito Italiano SpA (UniCredito) reflect the bank's strong business and geographic diversification in its core markets of Italy, Germany, Austria, and Central and Eastern Europe (CEE); strategic
