Deficiency guarantee by the State of Tyrol; Robust financial performance of the state; 100%-ownership by State of Tyrol; and Importance of the bank for the local economy. State guarantee has to be phased out by April 1, 2007; and Deficiency guarantee does not ensure timely payment. The ratings on Austria-based HYPO TIROL BANK AG (Hypo Tirol) reflect those on Austria's State of Tyrol (AAA/Stable/--), which wholly owns the bank and provides it with a deficiency guarantee (Ausfallbürgschaft). On April 2, 2003, the European Commission (EC) agreed with the Austrian government to phase out state guarantees by April 1, 2007, benefiting some Austrian banks, including all rated Landeshypothekenbanks. (For further details, see the article entitled "Austrian Landeshypothekenbanks Grandfathered Debt Ratings and
