On Oct. 28, 2005, Standard&Poor's Ratings Services raised its long- and short-term counterparty credit ratings on Germany's Bayerische Hypo- und Vereinsbank AG (HVB) and its core subsidiaries-- Bank Austria Creditanstalt AG (BA), and HVB Banque Luxembourg S.A. (HVB Lux)--to 'A/A-1' from 'A-/A-2'. The outlook on HVB, BA, and HVB Lux is negative. At the same time, all the ratings were removed from CreditWatch, where they had been placed with positive implications on May 31, 2005, after UniCredito Italiano SpA's (A+/Negative/A-1) bid for HVB. The rating actions follow the announcement that 88.14% of HVB's shareholders have accepted Unicredito's exchange offer. The upgrades reflect these entities' strategically important status within the enlarged group, as well as their weaker financial and
