Austrian Oberoesterreichische Landesbank Upgraded To 'A+' On Stronger Capitalization; Outlook Negative

Oberoesterreichische Landesbank (HYPO OÖ) strengthened its capital thanks to one-time income from the release of Heta Asset Resolution AG (HETA) related provisions, and we believe it will maintain a risk-adjusted capital ratio above 10%, in light of stable earnings and low dividends. We continue to regard Hypo OÖ as having a high likelihood of receiving government support from the State of Upper Austria, which improves the bank's overall creditworthiness. We are consequently raising our long-term rating on HYPO OÖ to 'A+' from 'A', and affirming our 'A-1' short-term rating. The negative outlook takes into account our negative outlook on Upper Austria, given that our expectation of a high likelihood of support from the state would be less beneficial if we

...+ Oberoesterreichische Landesbank (HYPO O+) strengthened its capital thanks to one-time income from the release of Heta Asset Resolution AG (HETA) related provisions, and we believe it will maintain a risk-adjusted capital ratio above 10%, in light of stable earnings and low dividends. + We continue to regard Hypo O+ as having a high likelihood of receiving government support from the State of Upper Austria, which improves the bank's overall creditworthiness. + We are consequently raising our long-term rating on HYPO O+ to 'A+' from 'A', and affirming our 'A-1' short-term rating. + The negative outlook takes into account our negative outlook on Upper Austria, given that our expectation of a high likelihood of support from the state would be less beneficial if we downgrade Upper Austria over the next two years. FRANKFURT (S&P Global Ratings) June 13, 2017--S&P Global Ratings today has raised its long-term counterparty credit rating on Austria-based Oberoesterreichische Landesbank AG (HYPO...

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