On May 31, 2005, Standard&Poor's Ratings Services placed its 'A-' long-term and 'A-2' short-term counterparty credit ratings on Germany-based Bayerische Hypo- und Vereinsbank AG (HVB) and subsidiaries Bank Austria Creditanstalt AG (BA) and HVB Banque Luxembourg S.A. on CreditWatch with positive implications. The action follows news of leading Italian bank UniCredito Italiano SpA's (AA-/Watch Neg/A-1+) possible takeover of HVB, Germany's third-largest banking group. The positive CreditWatch implications reflect the potential benefits for HVB of being acquired by a financially stronger entity. No further information has been made available at this time. Standard&Poor's will continue to monitor the situation, and will resolve the CreditWatch status accordingly. The ratings on HVB continue to reflect its solid franchise in
