Fitch confirms its confidence in the Italian banking system and raises the ratings of the two major groups, Intesa Sanpaolo and UniCredit. This step follows the recent improvement of Italy's sovereign rating from BBB to BBB+, and places both banks one notch above Italy's rating. For Intesa Sanpaolo, the upgrade is indicative of its "exceptional position of strength" in comparison to its domestic rivals, which is bolstered by its "flight to quality" status and product and revenue diversification. Unicredit also benefits from the upgrade, placing itself one notch above Italy’s sovereign rating. Fitch highlights how the bank enjoys geographic diversification in strong or growing economies and a very strong loss-absorbing capacity, factors that place it in an exceptionally strong position compared to national competitors.