Bulletin: Moratorium On HETA Debt Service Has No Immediate Impact On Republic of Austria Ratings

FRANKFURT (Standard&Poor's) March 3, 2015--Standard&Poor's Ratings Services said today that the moratorium on debt payments by Heta Asset Resolution AG (HETA), the wind-down unit set up for Hypo Alpe Adria Group's assets, has no immediate impact on the credit ratings on the Republic of Austria. The moratorium imposed by the Austrian regulator is stopping HETA's debt service on practically all financial debt until May 2016. The Austrian government guarantees €1 billion of HETA's debt (ISIN XS0863484035) through an unconditional, timely, and irrevocable guarantee. We understand that the government will honor its guarantee commitment and ensure continued debt service on that portion of the debt. Our understanding is based on various statements that senior government officials, including

...FRANKFURT (Standard & Poor's) March 3, 2015--Standard & Poor's Ratings Services said today that the moratorium on debt payments by Heta Asset Resolution AG (HETA), the wind-down unit set up for Hypo Alpe Adria Group's assets, has no immediate impact on the credit ratings on the Republic of Austria. The moratorium imposed by the Austrian regulator is stopping HETA's debt service on practically all financial debt until May 2016. The Austrian government guarantees 1 billion of HETA's debt (ISIN XS0863484035) through an unconditional, timely, and irrevocable guarantee. We understand that the government will honor its guarantee commitment and ensure continued debt service on that portion of the debt. Our understanding is based on various statements that senior government officials, including the minister of finance, have made to that effect. In addition, the uncertainty surrounding state support for systemically important banks in Austria is one of the reasons why the ratings on certain Austrian...

Bulletin