Important role for, and very strong link with, the State of Upper Austria, the bank's 51% owner. Low-risk business model and strong capitalization. Very low operating profitability compared with peers'. Concentration in the loan portfolio on one region, with a focus on public-sector-related lending and the promotion of subsidized housing. S&P Global Ratings' stable outlook on Oberoesterreichische Landesbank AG (HYPO OÖ) takes into account the stable outlook on Upper Austria and our expectation that the likelihood of support from the state will remain high over the next two years. The ratings are sensitive to HYPO OÖ's owner's ability and willingness to support the bank. We would lower the ratings on HYPO OÖ in the event of downgrade of Upper Austria
