This analysis has been republished to include an updated section on the State of Vorarlberg. Deficiency guarantee by the State of Vorarlberg until April 1, 2007; Implicit ownership support after April 1, 2007; Low exposure to interest rate market risk; Satisfactory capitalization; Robust state financial performance in recent years and low state debt burden; and High wealth level, well-balanced economy, and low unemployment figures of the state. State guarantee will be phased out by April 1, 2007; Limited potential of home market; Modest risk-adjusted profitability due to high provisioning costs in relation to revenues; Slightly declining state financial performance expected; and Low revenue-rising flexibility of the state. The ratings on Austria-based Vorarlberger Landes-und Hypothekenbank AG (Hypo Vorarlberg) are based on
