Solid market share with corporate and retail clients in the Austrian state of Vorarlberg. Strong capitalization and low cost of risk. Comfortable funding and liquidity profile, backed by implicit support from the government of Vorarlberg. Low income margins due to the low-yield environment and highly competitive banking market in Austria. Lack of geographical diversification, which makes the bank vulnerable to cyclical downturns in the regional economy. The stable outlook reflects S&P Global Ratings' expectation that Austria-based Hypo Vorarlberg Bank AG will maintain its current business and financial risk profiles, and continue to benefit from extraordinary government support from its federal state owner over the next two years, if needed. The bank's issuer credit rating rests on an unchanged stand-alone credit
