Strong national customer franchise. Dominant franchise in wealthy northern Italy. Conservative risk management and strategy. Modest internal capital generation. Relatively high single-name loan concentration. Standard&Poor's outlook on Italy-based Unione di Banche Italiane Scpa (UBI Banca) is negative, reflecting the possibility of a downgrade if we anticipated that deteriorating economic and banking industry conditions in Italy could affect UBI Banca's stand-alone credit profile (SACP). We could revise the outlook to stable, if we anticipated an improvement in economic and operating conditions for the Italian banking system. The ratings on UBI Banca reflect our 'bbb' anchor that we apply to commercial banks operating in Italy and our view of UBI Banca's "strong" business position, "moderate" capital and earnings, "adequate" risk
