Strategic cooperation with Raiffeisenlandesbank Oberösterreich Predominantly highly collateralized and granular loan portfolio Product expertise in the state's residential real-estate promotion activities Implicit support from State of Upper Austria (Land Oberoesterreich) as the majority shareholder Low operating profitability and earnings quality compared with both national and international players Reliance of business activity in low-margin public sector and mortgage lending High proportion of income from equity holdings in relation to operating revenues Improving, but still unsatisfactory, capitalization with adjusted total equity-to-risk assets of 5.6% The ratings on Oberösterreichische Landesbank AG's (Hypo OÖ) senior unsecured unguaranteed obligations benefit from three notches of implicit ownership support from the State of Upper Austria (AAA/Stable/A-1+) due to the latter's 51% ownership. Hypo OÖ is a "government-related
