Hypo Tirol Bank's capitalization has improved beyond our expectations, owing to progress on its restructuring, supported by the resolution of HETA-related issues, the cleanup of legacy problem loans, continued downsizing, and stable internal capital generation. We now expect the bank's capitalization will remain strong on a sustainable basis. As a result, we are raising our long-term rating on Hypo Tirol Bank to 'BBB+' from 'BBB' and affirming our 'A-2' short-term rating. The positive outlook reflects our expectation that the bank's business position may strengthen over the next two years, particularly if it continues reducing its nonperforming loans and improving efficiency. On Oct. 30, 2017, S&P Global Ratings raised its long-term issuer credit rating on Austria-based Hypo Tirol Bank AG to
