On April 2, 2007, Standard&Poor's Ratings Services revised the outlook on Germany-based Bayerische Hypo- und Vereinsbank AG (HVB) to positive from stable. At the same time, the long-term 'A' and short-term 'A-1' counterparty credit ratings were affirmed. The outlook revision follows the transfer of Unicredit Banca Mobiliare SpA 's (UBM) investment-banking business to HVB in exchange for newly issued shares, effective April 1, 2007. The transfer is a step toward closer integration of HVB into UniCredito Italiano SpA (UniCredito; A+/Stable/A-1). The convergence of the ratings on HVB with those on Unicredito will depend on the further development of the integration, and HVB's business and financial profile on a stand-alone basis. The sustainability of HVB's turnaround, and prudent capitalization
