Scope Ratings has updated its rating report on Hypo-Bank Burgenland AG, rated A- with Stable Outlook.

Affirmation reflects the bank's well-established regionally focused banking model, very strong capitalisation and good profitability, mitigating asset risks.

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.

High overcollateralisation, limited execution risk and relative small size mitigates potential rating impact.

The affirmation reflects Bank Burgenland's acquisition of parts of Austrian Anadi Bank, announced in December 2023, which we view as neutral to the current rating level.

Scope Ratings has updated its report on the Hypothekenpfandbriefe (Austrian mortgage-covered bonds) issued by Bank Burgenland.

The rating reflects a combination of cover pool and governance support. Credit risks stemming from the mixed cover pool in combination with interest rate mismatches between assets and liabilitites drive the level of rating-supporting overcollateralisation

The ratings continue to reflect Bank Burgenland's well-established regional franchise for residential and commercial real estate financing and corporate and institutional banking.

Scope Ratings has updated its report on the Hypothekenpfandbriefe (Austrian mortgage-covered bonds) issued by Bank Burgenland.

The rating reflects strong support from the cover pool. Credit risks stemming from the mixed cover pool in combination with asset-liability mismatches drive the level of rating-supporting OC. High stakeholder cohesiveness increases the rating floor.