The Austrian government has recently proposed special legislation to bail in holders of Hypo Group Alpe Adria's subordinated debt, despite a grandfathered guarantee provided by the State of Carinthia. This extraordinary development could lead to our reassessment of the likelihood of state support from Upper Austria to its government-related entity Oberoesterreichische Landesbank AG (Hypo OÖ). Therefore, we are placing our 'A/A-1' ratings on Hypo OÖ on CreditWatch negative. The CreditWatch mainly reflects our expectation that the link to and/or role for Upper Austria or Upper Austria's propensity to support Hypo OÖ may weaken if the law is enacted. On June 10, 2014, Standard&Poor's Ratings Services placed its 'A/A-1' long- and short-term counterparty credit ratings on Austria-based Oberoesterreichische Landesbank
