The ratings on Oberoesterreichische Landesbank AG (Hypo OÖ) are based on the deficiency guarantee (Ausfallsbürgschaft) of the bank's majority owner, the State of Upper Austria (AAA/Stable/A-1+). Ratings on Hypo OÖ therefore reflect the credit quality of the State of Upper Austria, which already factors in the sound stand-alone risk profile of Hypo OÖ as the State's largest contingent liability. (For an analysis of the credit quality of the state, see full analysis on RatingsDirect, Standard&Poor's Web-based credit analysis system.) Although the deficiency guarantee is not a timely guarantee, Standard&Poor's believes that, as long as the state remains the majority owner and guarantor for all of the bank's obligations, it has a strong economic incentive to support
