The ratings on Germany-based Bayerische Hypo- und Vereinsbank AG (HVB) are based on what Standard&Poor's Ratings Services considers to be the bank's core status within the UniCredit group (parent company UniCredit SpA rated A/Stable/A-1). The 'AAA' ratings on HVB's Oeffentliche Pfandbriefe (public-sector covered bonds) primarily reflect the quality of the collateral, coupled with protections afforded by German insolvency and banking laws. Standard&Poor's does not rate HVB's Hypothekenpfandbriefe (mortgage-covered bonds). HVB's core status, which raises its stand-alone creditworthiness by three notches, reflects the bank's 100% ownership by UniCredit and its role as the group's center of competence for its capital markets business and Germany-based operations. We consider HVB a highly systemically important institution in Germany, but we
