Dominant franchise in wealthy northern Italy. Conservative risk management and strategy. Better-than-system average credit loss experience. Moderate capital position. Modest earning capacity. Relatively low coverage of non-performing assets. The negative outlook on Unione di Banche Italiane Scpa (UBI) reflects the possibility that we could lower the ratings if we anticipate that one of the following will likely occur: The economic and operating conditions in which Italian banks operate deteriorate further; or Either the economic or the operating conditions in which Italian banks operate deteriorate further and UBI Banca's capital position weakens--either because of higher economic risk or because of higher-than-expected pressures on the bank's profitability. We do not currently expect to revise the outlook on UBI to stable. However, we
