"Very strong" link and "important role" to the State of Upper Austria (Land Oberoesterreich), underpinned by Upper Austria's 51% ownership. Strategic cooperation with 34% stakeholder Raiffeisenlandesbank Oberösterreich. Predominantly highly collateralized and granular loan portfolio. Business focus on the state's low-risk real estate promotion activities. Low operating profitability and earnings quality compared with those of national and international players. Reliance of business activity on low-margin public sector and mortgage lending. High proportion of income from equity holdings in relation to operating revenues. Comparably weak capitalization. The ratings on Oberoesterreichische Landesbank AG (Hypo OÖ) benefit from three notches of implicit ownership support from Hypo OÖ's 51% owner, the State of Upper Austria (AAA/Stable/A-1+). We consider Hypo OÖ a government-related entity (GRE). The
