Profitability is set to remain strong in 2026. Moderate loan growth, steady fee expansion and stable costs will support profits. But we are projecting an increase in provisions as default rates normalise, while economic and other risks remain high.

This publication does not constitute a rating action.

Strong integration with its owning counties, high strategic importance in regional development, a strong market position, and resilient toll revenue are strengths. High leverage and substantial capital expenditure are challenges.

Tuesday, November 25th 2025 - 3:00 PM (CET)

The rating on Hypo-Bank Burgenland AG’s Austrian mortgage covered bonds (Hypothekenpfandbriefe) reflects the issuer's A- rating enhanced by six notches from governance and cover pool support. Two notches provide a buffer against an issuer downgrade.

This publication does not constitute a rating action.

The issuer rating reflects the stable cash flow from a diversified Budapest office portfolio, strong profitability and relatively low leverage. The issuer’s small size, weak tenant and geographic diversification, and modest market share are constraints.

The periodic review has resulted in no rating action.

The periodic review has resulted in no rating action.

Weakening public finances and a fragmented political environment challenging fiscal consolidation prospects drive the downgrade. A wealthy economy, favourable debt profile, and sound external position anchor the ratings.