On Jan. 21, 2005, Standard&Poor's Ratings Services placed its 'A-' long-term counterparty credit ratings on Bayerische Hypo- und Vereinsbank AG (HVB) and Bank Austria Creditanstalt AG (BA) on CreditWatch with negative implications. The 'A-2' short-term ratings on both banks were affirmed. The CreditWatch placement reflects concerns about HVB's ability to restore its financial profile within a reasonable timeframe, following HVB's announcement of further loan-loss provisions on real estate loans of €2.5 billion and restructuring charges of €250 million to streamline its German operations, and weaker-than-expected progress in 2004. The CreditWatch placement on BA as a core subsidiary of HVB follows that on its majority owner HVB. The affirmation of the short-term ratings on HVB and BA follows Standard
