The ratings on Germany-based Bayerische Hypo- und Vereinsbank AG (HVB) are based on its core status within the UniCredito Italiano SpA (UniCredito; A+/Stable/A-1) 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 core status, which raises the ratings on HVB by three notches, reflects the 95.4% ownership by UniCredito, the progress of HVB's integration into the group, and its role as the group's center of competence for capital markets business and Germany. With only 18% of risk-weighted assets (RWAs) in the private customer businesses at Sept. 30, 2007, HVB is predominantly a
