...Rating Rationale: The `AAA' rating of UniCredit Bank AG's (HVB, BBB+/Negative/F2/bbb+) public sector Pfandbriefe programme is based on its Long-Term Issuer Default Rating (IDR), the payment continuity uplift (PCU) of five notches, an IDR uplift of two notches and the overcollateralisation (OC) that Fitch Ratings relies upon of 39.3%, which provides more protection than the `AAA' breakeven OC of 10%. 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/Stable/F2/bbb), would not result in a downgrade of the Pfandbriefe. Improved Maturity Mismatches: HVB's `AAA' breakeven OC has decreased significantly to 10% from 14.5% over the last 12 months. The change has mainly been driven by the reduced maturity mismatches of the programme, as the stressed weighted average (WA) life of assets reduced to 6.1 years (from...
