New Issue: Oberoesterreichische Landesbank AG Mortgage Covered Bond Program

Very strong jurisdictional support assessment for mortgages in Austria. The mortgage product is first ranking claims, characterized by low loan-to-value ratio levels and high seasoning, as reflected in our credit analysis The only account provider for the program is the Austrian National Bank, whose credit standing we consider to be identical to that of the European Central Bank. Commingling risk is addressed by the Austrian Covered Bond Act. High asset-liability mismatches combined with high unhedged interest rate mismatches. There are currently no commitments in place for liquidity coverage or overcollateralization. High concentration in the State of Upper Austria. The positive outlook on the covered bonds reflects the positive outlook on Oberoesterreichische Landesbank AG (HYPO OOE). There are no unused notches

...*Based on our discussions with the issuer, we understand that the issuer intends to manage the currently available overcollateralization (OC) down to be commensurate with the level needed for one notch of collateral-based uplift. Therefore, our rating reflects the expected level of available OC. Consequently, in line with our Covered Bonds Criteria, we can only assign one notch of collateral-based uplift above the jurisdiction-supported rating level....

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