Core member of UniCredito Italiano SpA Domestic franchise, mainly in Bavaria Improved earnings trend due to restructuring Sound liquidity management Weak, but decreasing, domestic mortgage loan book High earnings reliance on capital markets Modest business and earnings diversification after the sale of Bank Austria Creditanstalt AG The ratings on Germany-based Bayerische Hypo- und Vereinsbank AG (HVB) are based on its core status within the UniCredito Italiano SpA (UniCredito; A+/Stable/A-1) group. The 'AAA' ratings on HVB's Öffentliche Pfandbriefe primarily reflect the quality of Pfandbriefe collateral, coupled with protections afforded by German insolvency and banking laws. HVB's Hypothekenpfandbriefe are not rated by Standard&Poor's Ratings Services. HVB's core status, which raises the ratings on HVB by three notches, reflects the 95.4%