Moody’s has placed on review for downgrade UniCredit and the Italian bank’s subsidiaries in Germany and Austria, UniCredit Bank and UniCredit Bank Austria, because of weak third quarter results.

The rating agency rates UniCredit A2, with a standalone bank financial strength rating (BFSR) of C-. The review of the standalone BFSR triggered the review of the bank’s long and short term ratings, driven by UniCredit’s third quarter results announcement on Monday.

“Results for the third quarter of 2011 showed a net loss of Eu10.6bn for the period,” said Moody’s. “The principal cause of this loss was a Eu10.2bn write down of goodwill and certain other assets.

“Additionally, the bank’s operating profit declined, affected by trading losses and higher loan loss charges.”

The rating agency noted that UniCredit has announced a new strategic plan involving a fully underwritten rights issue to raise Eu7.5bn of equity, and said that the announcement of third quarter loss and the strategic plan will be taken into consideration during the review process.

Moody’s has also placed on review for downgrade A2 ratings of UniCredit Bank and UniCredit Bank Austria, as well as UniCredit Bank’s BFSR (C-).