On Feb. 26, 2004, Standard&Poor's Ratings Services revised to stable from negative its outlook on Bayerische Hypo- und Vereinsbank AG (HVB) and Bank Austria Creditanstalt AG (BA). At the same time, it affirmed its 'A-' long-term and 'A-2' short-term counterparty credit and certificate of deposit ratings on both companies. The rating actions mainly reflect: The turnaround in HVB's operating results by about €1.5 billion in 2003 resulting primarily from reduced provisioning needs and cost cutting; The announcement of HVB's rights issue to absorb the write-off of various financial investments and goodwill and to partially restore capital ratios; and The expectation that owing to the bank's strategic initiatives, HVB's operating results will further improve in 2004. The change in
