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 will be phased out by April 1, 2007; and Deficiency guarantee does not ensure timely payment. (Editor's Note: This analysis has been republished to include more recent information on the State of Tyrol.) The ratings on Austria-based HYPO TIROL BANK AG (Hypo Tirol) reflect those on Austria's State of Tyrol (AAA/Stable/A-1+), 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
