On Feb. 25, 2005, Standard&Poor's Ratings Services affirmed its 'A-' long-term and 'A-2' short-term counterparty credit ratings on Germany-based Bayerische Hypo- und Vereinsbank AG (HVB) and Austria-based Bank Austria Creditanstalt AG (BA). The outlook on HVB and BA is negative. The long-term ratings were removed from CreditWatch where they were placed on Jan. 21, 2005. The rating action follows HVB's Feb. 24, 2005, announcement of its full-year results and restructuring plans, and Standard&Poor's review of the group. The rating affirmation reflects Standard&Poor's expectation that the strengthening of loan-loss reserves (LLRs) and restructuring measures, which have reduced HVB's capitalization to very low levels, will be largely offset by improved future earnings retention to restore its
