RAIFFEISENLANDESBANK NIEDERÖSTERREICH-WIEN AG

shall also be paid.
44
There is the risk that the introduction of the stability tax results in substantial additional costs for the
Issuer with a material negative effect on RLB NÖ-Wien's business, results of operations and financial
condition.
Liquidity risk
Receivables and liabilities of the Issuer have different maturities. This could adversely affect the
solvency of the Issuer and, consequently, its business, results of operations and financial condition
and results in the risk that the Issuer may be unable to fulfil its current and future financial obligations
in full or punctually.
Refinancing risk
The Issuer's business and profitability is dependent on its ability to access refinancing opportunities.
Access to refinancing opportunities may be restricted or may become economically more
disadvantageous in the future due to external factors (as e.g. the crisis in the capital markets) or a
deterioration of the Issuer's rating. This could have a material adverse effect on RLB NÖ-Wien's
business, results of operations and financial condition.
Rating risk
On 6 October 2010, Moody's Investor Service ("Moody's") 3 downgraded the rating for long-term
liabilities (deposits and bonds) from Aa3 to A1 and the bank's financial strength rating from C to C-,
and confirmed a "stable outlook". This rating as well as the stable outlook was confirmed by Moody's
Investor Service on 16 March 2012.
The ratings assigned to the Issuer by the rating agency Moody's may have a material impact on the
Issuer's refinancing costs. The rating is defined as the opinion of a rating agency on the credit
standing of the Issuer, as an indicator of the possibility that a credit loss may occur due to insolvency,
delay in payment or incomplete payment to the investors. It is based, among other things, on the
Issuer's business model, business strategy, its shareholders and a valuation of its financial, assets
and earnings position. A rating is no recommendation to buy, sell or hold securities since the rating
may be suspended, downgraded or withdrawn by the rating agency. A (potential) suspension,
downgrading or withdrawal may result in a restriction of the Issuer's access to funds and,
consequently, higher refinancing costs or oblige the Issuer to immediate repayment or provision of
additional collateral with respect to existing debt. Deterioration in the Issuer's creditworthiness and,
accordingly, its rating could have a material adverse effect on RLB NÖ-Wien's business, results of
operations and financial condition.
Rating methodologies introduced as a result of the entering into force of Regulation (EC) No.
1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating
agencies may result in deviations from previously applied rating methodologies and, consequently,
rating changes.
Possible future downgrades of the financial ratings of the Issuer could impair its ability to refinance
and have a material adverse effect on the business, the financial position, the assets position, the
profitability and/or the business prospects of the Issuer.
Country risk
RLB NÖ-Wien is active as a regional bank in the East of Austria. The bank serves customers with
cross-border business activities as a consultancy bank in the Centrope region (defined as Vienna,
Lower Austria, Burgenland as well as Czech Republic, Slovakia and Hungary). Furthermore, RLB NÖ-
Wien conducts business in countries outside the Centrope region, e.g. in other EU member states.
3 "Moody's" is a credit rating agency based in the United States with establishments in the European Union. Among those,
Moody's Investors Service Ltd has been registered (pursuant to the list of registered and certified credit rating agencies
published on the website of the European Securities and Markets Authority (www.esma.europa.eu)) pursuant to Regulation
(EC) No. 1060/2009 with the Financial Services Authority (FSA) in the United Kingdom and with the Federal Financial
Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) in Germany. Moody's Investors Service Ltd has also
been recognised as an eligible external credit assessment institution by the Financial Market Supervisory Authority
(Finanzmarktaufsicht) in Austria and its rating is recognised as eligible for the purposes of § 22a Para. 4 Austrian Banking
Act ("BWG") and § 22c Para. 1 BWG in Austria.