The ratings on Austria-based HYPO TIROL BANK AG (Hypo Tirol; formerly known as Landes-Hypothekenbank Tirol AG) reflect those on Austria's State of Tyrol (AAA/Stable/--), which wholly owns the bank and has provided it with a deficiency guarantee (Ausfallbürgschaft). Although the European Commission (EC) has recently proposed to abolish this guarantee by Dec. 31, 2004, a final agreement on the phasing out has yet to be reached, however. As the current guarantee does not ensure timely payment, Standard&Poor's will continue to monitor the state's incentive to honor its obligation in a timely manner if it became necessary and also expects that the Austrian states will be allowed to serve grandfathered obligations in a timely manner if certain conditions are
