The ratings on Austrian bank Landes-Hypothekenbank Tirol AG (Hypo Tirol) are based on the deficiency guarantee (Ausfallsbürgschaft) of the bank's sole owner, the State of Tyrol, and the state's strong incentives and commitment to meet its obligation to the bank in a timely manner. The ratings on the State of Tyrol reflect the province's robust financial performance and very low debt levels. Low unemployment and improving economic growth further underpin Tyrol's credit quality. Factors offsetting the ratings are wealth levels below the national average and some dependence, although declining, on the tourism industry. In line with a favorable economic environment, Tyrol generated a strong operating surplus of 12.5 % of operating revenues and a surplus before debt repayment of 5.7
