The ratings on Oberoesterreichische Landesbank AG (Hypo OÖ) benefit from three notches of implicit ownership support from Hypo OÖ's 51% owner, the State of Upper Austria (AAA/Stable/A-1+). We consider Hypo OÖ a government-related entity (GRE). The ratings reflect Standard&Poor's Ratings Services' opinion that there is a "high" likelihood that Upper Austria would provide timely and sufficient extraordinary support to Hypo OÖ in the event of financial distress. The ratings also reflect Hypo OÖ's cooperation on selected areas with its strategic partner, Raiffeisenlandesbank Oberösterreich (RLB OÖ; not rated), Hypo OÖ's sound stand-alone risk profile, and its good market position in state-related banking services. Primary rating constraints are low profitability and comparatively weak regional and earnings diversification, owing to Hypo
