On Oct. 8, 2002, Standard&Poor's Ratings Services revised its outlook on Germany-based Bayerische Hypo- und Vereinsbank AG (HVB) and related entities to negative from stable. At the same time, the long-term single-'A' and 'A-1' short-term counterparty credit and single-'A' senior unsecured debt ratings on HVB, Bank Austria Creditanstalt AG and HVB Real Estate Bank AG were affirmed. In addition, the single-'A-/A-2' counterparty credit ratings on Pfandbriefbank International S.A., Westfaelische Hypothekenbank AG and Wuerttembergische Hypothekenbank AG were affirmed. The change in outlook reflects HVB's further weakened business and risk profile as well as growing concerns about the effect of a prolonged economic downturn on the bank's asset quality and its ability to restore profitability and to improve capital strength
