...Rating Rationale: The `AAA' rating of UniCredit Bank AG's (HVB, A-/Negative/F2) public- sector Pfandbriefe programme is based on its Long-Term Issuer Default Rating (IDR) of `A-', the unchanged payment continuity uplift (PCU) of five notches, an unchanged IDR uplift of two notches and the overcollateralisation (OC) that Fitch Ratings relies upon of 47.9%, which provides more protection than the `AAA' breakeven OC of 13.5%. Buffer Offsets Issuer Outlook: The Outlook on HVB's public-sector Pfandbriefe programme is Stable despite the Negative outlook on HVB's IDR, given that a potential one-notch downgrade to the IDR of its ultimate parent (UniCredit S.p.A. BBB+/Negative/F2/bbb+) would not result in a downgrade of the Pfandbriefe. Cash Flow Valuation Drives Breakeven OC: The main constituent of the breakeven OC remains the cash flow valuation component of 6.1%. The component has slightly increased due to a reduced margin expectation, mirroring the highly competitive market for public-sector...
