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+). Although the deficiency guarantee is not a timely guarantee, Standard&Poor's believes that the state has a strong economic incentive to support the bank in a timely fashion as long as it is majority owner and guarantor for all of the banks obligations. 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
