The ratings on Landes-und Hypothekenbank Vorarlberg AG (Hypo Vorarlberg) reflect the deficiency guarantee (Ausfallsbürgschaft) of the bank's majority owner, the State of Vorarlberg (Vorarlberg; AAA/Stable/A-1+), and its strong incentives and commitment to meet its obligation in a timely manner. Vorarlberg's credit quality reflects a consistently robust financial performance and very low debt levels, underpinned by a dynamic and well-balanced economy generating low unemployment and high wealth. Posting an operating surplus of 22% to operating revenues, Vorarlberg recorded another excellent financial year in 1999. Over the past five years the surplus after capital spending has averaged a high 8% of total revenues. The budget for 2000 foresees an equally strong year, with an operating surplus of 20% to operating revenues, despite
