Dominant franchises in key provinces of wealthy northern Italy Good track record in merger integration Sound bottom-line profitability Historically aggressive capital policy Exposure to corporate credit risk higher than international peers' Relatively high single-name loan concentration The ratings on Unione di Banche Italiane Scpa (UBI) reflect its strong northern Italian franchise and sound financial profile, based on satisfactory operating performance and moderate cost of credit risk. Constraining the ratings, however, are potential risks from a large exposure to Italian corporates and significant single-name concentration. UBI is a major Italian banking player, with a 6% national market share and about 4 million clients. UBI notably exhibits a very strong market position in Lombardy, Italy's richest and most populous region, with a
