Hypo Tirol's rundown of its Italian loan portfolio, notably its nonperforming loans, is progressing faster than we expected. Exposures are set to be even more focused on its home market, the State of Tyrol, and neighboring regions with similar economic risk. We are upgrading Hypo Tirol Bank to 'A/A-1' from 'A-/A-2'. The stable outlook reflects our expectation that, over the next two years, the bank will sustain its current business and risk profiles and continue to benefit from extraordinary government support from its 100% owner, the State of Tyrol. On Oct. 15, 2019, S&P Global Ratings raised to 'A/A-1' from 'A-/A-2' its long- and short-term issuer credit ratings on Austria-based Hypo Tirol Bank AG. The outlook is stable. We think
