The ratings on Oberoesterreichische Landesbank AG (Hypo OÖ) are based on the deficiency guarantee (Ausfallsbürgschaft) of the bank's majority owner, the State of Upper Austria (AAA/Stable/A-1+; for further details of the state's credit quality, see full analysis on RatingsDirect, Standard&Poor's Web-based credit analysis system). Although the deficiency guarantee is not a timely guarantee, Standard&Poor's considers 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
