Franchise strength in Italy, Bavaria, Austria, and some Central and Eastern European countries Strong business and geographic diversification Good profitability at the Italian and CEE businesses Good integration track record Complex integration and turnaround of banks operating in various regulatory and economic environments Structurally weaker asset quality compared with peers Only adequate capital ratios Exposure to market risk and to earnings volatility in its markets and investment banking activities The ratings on Italy-based UniCredito Italiano SpA (UniCredito) reflect the bank's solid franchise in Italy, the German State of Bavaria, the Republic of Austria, and Central and Eastern Europe (CEE). They also reflect its strong business and geographic diversification, good profitability at the Italian and CEE businesses, and good integration track
