Tightened capital position following strong growth is only expected to moderate in the medium term. Profitability remains supportive and currently benefits from the microbank transition.

Scope Ratings has updated its rating report on UniCredit, rated A with Stable Outlook.

The rating is supported by the guarantee of the German Federal State of Baden-Württemberg (AAA/Stable) for L-Bank's existing and future obligations with respect to money borrowed, bonds issued, and derivative transactions entered into by the bank.

The extensive guarantee framework of the Free State of Bavaria (AAA/Stable) for LfA’s obligations and the bank’s high strategic importance to the federal state underpin the rating.

The rating is supported by BNP Paribas’s very resilient business model, supportive profitability and asset quality, and adequate buffers to prudential requirements based on the lighter risk intensity of the balance sheet.

The rating reflects the bank’s very resilient business model that combines banking, wealth management and insurance. Profitability is relatively modest compared to peers but supported by strong asset quality and a solid capital position.

The periodic review has resulted in no rating action.

The periodic review has resulted in no rating action.

Robust budgetary performance, solid liquidity position and resilient regional economy support the rating. Limited flexibility in revenue and expenditure are constraints.

A moderate and stable government debt, strong government debt profile, and robust growth support the ratings. Institutional, geopolitical and external-sector risk remain credit challenges.