(The following statement was released by the rating agency)
Dec 10 - Fitch Ratings has assigned Hypo Alpe-Adria Bank International AG’s (Hypo Alpe) EUR1bn government-guaranteed Tier 2 subordinated notes (ISIN: XS0863484035) a ‘AAA’ final rating.
The assignment of the final rating follows the completion of the issuance and receipt of documents conforming to the information previously received. The final rating is the same as the expected rating assigned on 26 November 2012 (see ‘Fitch Rates Hypo Alpe’s Government-Guaranteed Tier 2 Notes ‘AAA(EXP)', published 26 November 2012).
Fitch does not rate Hypo Alpe itself and the rating is entirely based on Fitch’s expectation that the Republic of Austria (‘AAA’/Stable) will honour the unconditional, unsubordinated and irrevocable guarantee provided to holders of the subordinated notes in a full and timely manner. As a result, the rating of the notes is in line with the sovereign rating of Austria.
The rating of the notes, maturing in 2022, is sensitive to changes in Austria’s sovereign rating and a downgrade of Austria’s sovereign rating would lead to a downgrade of the subordinated notes.