Moody's on May 14 affirmed Unione di Banche Italiane SpA's long-term issuer and senior unsecured debt ratings at Baa3 and revised the outlook to negative from stable.
The negative outlook reflects the rating agency's expectation of a reduction in the stock of the Italian bank's bail-in-able senior debt over the next 12 months to 18 months, during which a large amount of retail bonds are expected to mature.
Moody's also affirmed the bank's long- and short-term deposit ratings at Baa2/P-2, baseline and adjusted baseline credit assessments at "ba2" and long- and short-term counterparty risk assessments at Baa2(cr)/P-2(cr).
The long-term deposit rating carries a stable outlook, reflecting the agency's expectation that the bank will be able to maintain a gradual improvement in its credit profile.
