"Very strong" link to and "important role" for the State of Upper Austria, which owns 51% of the bank. Benefits from a strategic partnership with 39% stakeholder Raiffeisenlandesbank Oberösterreich. A predominantly highly collateralized and granular public-sector-related loan portfolio. Comparatively low operating profitability. Reliance of business activity on low-margin public-sector and mortgage lending. Standard&Poor's Ratings Services' outlook on Austria-based Oberoesterreichische Landesbank AG (HYPO OÖ) is stable. This reflects our expectation that over the next 18-24 months HYPO OÖ's stable earnings retention, albeit comparably low, will provide a sufficient capital buffer against potentially higher economic risk. We consider that rising economic risks in the eurozone (European Economic and Monetary Union) and the likely impact on the Austrian economy could put
