H. 19.46 - UBI Banca: Fitch ratings

Bergamo, 20 February 2017 - UBI Banca informs that today Fitch Ratings reduced by one notch the Long Term IDR (Long-term Issuer Default Rating), from "BBB" to "BBB-", and the Viability Rating, from "bbb" to "bbb-". The Outlook remained Negative, in relation to the weak Italian economic context.

According to Fitch, the rating action was motivated by the weight of the non performing exposures' stock on equity, judged high from a prospective point of view, seen that, in the Agency's opinion, the reduction targets indicated in the 2019/2020 Business Plan do not seem to be sufficiently ambitious.

As a reminder, the Group is implementing the Plan in significant advance compared to the original time horizon:

• in 2016 UBI Banca reduced its non performing exposures: a) in gross terms by 6.8% to 12.5 billion, corresponding to 14.4% of the Group's total loan book (15.1% at the end of 2015); b) in net terms of 16.9% to 8 billion, corresponding to 9.8% of the Group's total loan book (11.5% at the end of 2015). And this also thanks to the halving of new inflows from performing loans, both in gross and in net terms, down to pre-crisis levels.

• At the same time, cash coverage has grown to 35.7% from 27.9%; on top of this, 87.7% of NPEs stocks are assisted by collateral and/or personal guarantees. Including write-offs, coverage has reached 45.8%, from 37.2% in 2015.

The ratings attributed to UBI Banca are the following:

Long-term IDR: "BBB-" from "BBB"; Outlook Negative Short-term IDR: confimed at "F3"

Viability Rating: "bbb-" from "bbb" Support Rating: confirmed at "5"

Support Rating Floor: confirmed at "No Floor" Subordinated debt: "BB+" from "BBB-"

For further information please contact:

UBI Banca - Investor relations - Tel. +39 02 77814931- +39 035 3922217 Email: investor.relations@ubibanca.it

UBI Banca - Media relations - Tel. +39 027781 4213 - 4932 - 4936 Email: media.relations@ubibanca.it

Copy of this press release is available on the website www.ubibanca.it