Core member of the UniCredit group Established domestic franchise, mainly in Bavaria Stabilization of domestic business through continued loan workouts and stringent cost management Sound capital position and liquidity management Weak, but decreasing, domestic real estate loan book High earnings reliance in volatile capital markets business and elevated market risk from structured credit books Performance of domestic business still lagging competitors' Modest business and earnings diversification after the sale of Bank Austria AG The ratings on Germany-based Bayerische Hypo- und Vereinsbank AG (HVB) are based on its core status within the UniCredit group (parent company UniCredit SpA rated A+/Negative/A-1). The 'AAA' ratings on HVB's Oeffentliche Pfandbriefe (public-sector covered bonds) primarily reflect the quality of the collateral, coupled with protections afforded
