The ratings on Germany-based Bayerische Hypo- und Vereinsbank AG (HVB) are based on its strategically important status within the UniCredito group. The 'AAA' ratings on HVB's Öffentliche Pfandbriefe primarily reflect the quality of Pfandbriefe collateral, coupled with protections afforded by German insolvency and banking laws. HVB's Hypothekenpfandbriefe are not rated by Standard&Poor's Ratings Services. HVB's profile will change substantially through the planned group-internal transactions over the next few quarters. According to the plan, HVB will sell its 77.53% stake in Bank Austria Creditanstalt AG (BA; A/Positive/A-1), its subsidiary in the Ukraine, and its asset-management business to UniCredito, and its subsidiaries in Russia and the Baltic region to BA in the course of 2006. HVB is expected to use
