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 full analysis on RatingsDirect). Although the deficiency guarantee is not a timely guarantee, Standard&Poor's believes that as long as the state is the majority owner and guarantor for all of the bank's obligations, the state has a strong economic incentive to support the bank in a timely fashion as: It would not be beneficial to the state to tarnish its own reputation as an issuer in the capital markets; The deficiency guarantee covers both full payment of principal and interest, including post
