The ratings on Oberösterreichische Landesbank AG (Hypo OÖ) are based on the deficiency guarantee (Ausfallsbürgschaft) of the bank's 50.6% owner, the State of Upper Austria (Upper Austria; AAA/Stable/A-1+). The ratings on Hypo OÖ therefore reflect the credit quality of Upper Austria. (For an analysis of the credit quality of the state, see full analysis on RatingsDirect.) On April 2, 2003, the European Commission (EC), agreed with the Austrian government to phase out state guarantees by April 1, 2007. All rated Landeshypothekenbanks are affected by this decision (For further details, see the article entitled "Austrian Landeshypothekenbanks Grandfathered Debt Ratings and CCRs Affirmed; Outlook Neg", published on April 3, 2003, on RatingsDirect). Grandfathered obligations incurred until April 2, 2003, irrespective of their
