The ratings on Oberoesterreichische Landesbank AG (Hypo OÖ) are based on the deficiency guarantee (Ausfallsbürgschaft) of its majority owner, the State of Upper Austria (AAA/Stable/A-1+, for the analysis of the credit quality of the state, see separate publication on RatingsDirect). 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. With total consolidated assets of €4.0 billion at Dec. 31, 2000, and adjusted common equity €118 million, Hypo OÖ is one of the larger of eight Austrian mortgage banks. Hypo OÖ is a universal bank offering
