UniCredit: S&P raises outlook to 'stable' from 'negative'

(CercleFinance.com) - S&P Global Ratings raised its outlook on UniCredit to "stable" from "negative," saying the Italian lender has improved its resilience to withstand a hypothetical Italy default.


S&P, which reaffirmed its "BBB" long term credit rating on UniCredit, cited the group's build-up of additional resources of capital and its superior geographic diversification.

"We consider that UniCredit will continue to benefit from much stronger geographic diversification outside Italy than any of its domestic peers, sound liquidity, and the material progress it has made in reducing its stock of nonperforming exposures (NPEs) in Italy and in strengthening its capitalisation," the ratings agency said.

The shares of UniCredit are currently up 0.7% in Milan.

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