Moody39;s confirms UniCredit ratings with stable outlook
Would consider upgrade to Baa2 if it bought Commerzbank
That could move UniCredit39;s rating above Italy39;s

MILAN, Oct 2 Reuters Moody39;s would consider hiking UniCredit39;s credit rating one notch above Italy39;s sovereign rating if it bought Commerzbank, depending on a number of factors including an ability to contain execution and operational risks, the ratings agency said.

Italy39;s UniCredit has built a near 21 stake in Commerzbank, pending supervisory approval, and says it is keen to explore a full takeover.

The move has irked Germany39;s establishment and Commerzbank has said its strategy is based on independence. An acquisition would be Europe39;s first major crossborder banking deal since the global financial crisis.

Moody39;s said it would assess whether UniCredit39;s standalone rating of 39;Baa339;, currently aligned with Italy39;s rating, would merit an upgrade to 39;Baa239; in the event of a deal.

UniCredit39;s unsecured debt rating would improve as a consequence, it said.

Any upgrade would depend upon the combined group39;s degree of international diversification, exposure to Italian sovereign risk, and its postacquisition capitalization, asset risk, funding and liquidity, Moody39;s said.

Italy39;s weak credit standing has traditionally posed a challenge to Italian lenders39; international expansion plans.

Before courting Commerzbank, UniCredit underwent a long restructuring and amassed…