BAWAG P.S.K. Exhibit 1 Rating Scorecard BAWAG P.S.K. - Key financial ratios. Capital: Tangible Common Equity/Risk-Weighted Assets

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1 CREDIT OPINION 1 November 17 BAWAG P.S.K. Update following outlook change to stable Update Summary On 18 October 17, we affirmed BAWAG P.S.K.'s (BAWAG) A/P-1 senior unsecured debt and deposit ratings. At the same time, we changed the outlook on BAWAG's long-term ratings to stable from positive. Concurrently, we affirmed BAWAG's Baa subordinated debt rating, the bank's Baseline Credit Assessment (BCA) and Adjusted BCA, as well as the bank's A1(cr)/P-1(cr) Counterparty Risk (CR) Assessments. BAWAG P.S.K. Domicile Vienna, Austria Long Term Debt A Type Senior Unsecured - Fgn Curr Outlook Stable Long Term Deposit A Type LT Bank Deposits - Fgn Curr Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Bernhard Held, CFA VP Senior Analyst bernhard.held@moodys.com Carola Schuler Managing Director Banking carola.schuler@moodys.com Our outlook change reflects a weakening in BAWAG's standalone profile. The BCA continues to reflect (1) sustained high profitability levels, significantly above the Austrian industry average; and () a deposit-focused funding profile. At the same time, we expect capital ratios to provide a less ample safety buffer following a restatement of risk-weighted assets (RWA), driven by a recent acquisition and the findings of a regulatory review. The BCA also captures some asset risk concentration from real estate portfolio acquisitions and an opportunistic investment book, as well as the bank's more moderate liquidity profile, compared with similarly rated international peers. Exhibit 1 Rating Scorecard BAWAG P.S.K. - Key financial ratios BAWAG PSK (BCA: ) Median -rated banks 18% 5% 16% % 14% 1% 15% 1% 8% 1% 6% 4% % 5%.% 16.% 1.% 18.% 16.4% Capital: Tangible Common Equity/Risk-Weighted Assets Profitability: Net Income/ Tangible Assets Funding Structure: Market Funds/ Tangible Banking Assets Liquid Resources: Liquid Banking Assets/Tangible Banking Assets % % Asset Risk: Problem Loans/ Gross Loans CLIENT SERVICES Americas Asia Pacific Japan EMEA Solvency Factors (LHS) Source: Moody's Financial Metrics Liquidity Factors (RHS) Liquidity Factors Alexander Hendricks, CFA Associate Managing Director - Banking alexander.hendricks@moodys.com BAWAG's ratings reflect (1) the bank's BCA and Adjusted BCA; () the result of our Advanced Loss Given Failure (LGF) analysis, which takes into account the severity of loss faced by the different liability classes in resolution and which provides two notches of rating uplift to BAWAG's debt and deposit ratings; and () a low likelihood of BAWAG receiving government support, resulting in no additional rating uplift. Solvency Factors RATINGS

2 Credit strengths» Solid capitalisation level sustained despite acquisition-related pressures» Increasing core earnings through substantial efficiency gains, which benefits profit generation.» Strong access to stable retail deposits, which supports its funding profile. Credit challenges» BAWAG's future earnings retention and capital ratios will be limited by its dividend payout, as well as organic and inorganic growth plans.» Reduced cushion to minimum capital targets of management and regulator following its restatement of RWA and capital ratios.» BAWAG's acquisitive and organic growth is accompanied by an overhaul to its core operations in Austria Rating outlook» BAWAG's ratings carry a stable outlook. The stable outlook incorporates our expectation that future acquisitive growth and potential execution challenges around it reduce the likelihood of a sustainable improvement from the current credit metrics. We also expect the bank's liability structure to remain commensurate with the current results of the Advanced LGF analysis. Factors that could lead to an upgrade» Upward pressure on BAWAG's BCA and long-term ratings could result from (1) a signifincant improvement in solvency metrics; and () improved execution in terms of risk measurement and controls in relation to BAWAG's portfolio acquisition-driven diversification and international expansion strategy.» An upgrade of BAWAG's BCA is likely to trigger an upgrade of the bank's long-term ratings. Upward pressure on the bank's ratings could further develop if BAWAG's volume of subordinated debt instruments increases significantly compared with the bank's tangible banking assets, which could result in an additional rating uplift resulting from our Advanced LGF analysis. Factors that could lead to a downgrade» BAWAG's ratings could be downgraded if the bank's financial strength significantly deteriorates following (1) large acquisitive activities that would significantly reduce BAWAG's capital ratios and result in material execution risks; () execution challenges arising from BAWAG s acquisitive growth, in particular if these were to put strain on the bank s current capital ratios; or () currently unexpected losses from acquired international portfolios, significantly driving up the risk costs of BAWAG.» A downgrade of the long-term issuer and senior unsecured debt ratings could develop if BAWAG's volume of debt instruments decreases compared with the bank's tangible banking assets, which could result in fewer notches of rating uplift resulting from our LGF analysis. This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on for the most updated credit rating action information and rating history. 1 November 17

3 Key indicators Exhibit BAWAG P.S.K. (Consolidated Financials) [1] Total Assets (EUR billion) Total Assets (USD billion) Tangible Common Equity (EUR billion) Tangible Common Equity (USD billion) Problem Loans / Gross Loans (%) Tangible Common Equity / Risk Weighted Assets (%) Problem Loans / (Tangible Common Equity + Loan Loss Reserve) (%) Net Interest Margin (%) PPI / Average RWA (%) Net Income / Tangible Assets (%) Cost / Income Ratio (%) Market Funds / Tangible Banking Assets (%) Liquid Banking Assets / Tangible Banking Assets (%) Gross Loans / Due to Customers (%) CAGR/Avg [1] All figures and ratios are adjusted using Moody's standard adjustments [] Basel III - fully-loaded or transitional phase-in; IFRS [] Basel II; IFRS [4] May include rounding differences due to scale of reported amounts [5] Compound Annual Growth Rate (%) based on time period presented for the latest accounting regime [6] Simple average of periods presented for the latest accounting regime. [7] Simple average of Basel III periods presented Source: Moody's Financial Metrics Profile BAWAG is a universal bank domiciled in Austria. The bank offers a range of retail and corporate banking products, including deposit taking, loans and investment services. Moreover, the bank provides international business products, such as commercial real-estate financing, capital market solutions, and securities and asset management services. While the bank operates primarily in Austria, it also has a presence in core Western European markets, most notably Germany, where BAWAG awaits the closing of its signed acquisition of Suedwestbank AG (Suedwestbank) and is planning to expand its direct bank franchise, easygroup, into Germany and into other Western European markets thereafter, with the focus remaining on German-speaking countries. The bank held total assets of 9.7 billion as of June 17 and serves over. million customers through a nationwide network of branches that are operated in cooperation with Oesterreichische Post AG (Austrian Post). Detailed credit considerations Capital buffer reduced following acquisition and RWA restatement Following a significant improvement in capital ratios based on earnings retention over the past 18 months, BAWAG's capital ratios are returning towards the 1% fully loaded Common Equity Tier 1 (CET1) capital ratio floor level targeted by management. This ratio will, in our view, remain range bound between 1% and 14% over the 1-18 months' outlook horizon, with the exact positioning depending on the timing and extent of further acquisitive growth. We reflect this reduced capital ratio expectation and the lowered buffer towards regulatory requirements with an adjustment of BAWAG's assigned Capital score to a. Over the past quarters, BAWAG acquired in several occasions specialised companies with the aim to apply its own streamlined processes to the acquisition targets while benefitting from the specific knowledge of the acquired sector specialists. The latest case is the acquisition of Suedwestbank, which the bank expects to close in this or the next quarter. The inclusion of Suedwestbank's RWA ( 5.7 billion as of 1 December 16) into BAWAG's capital metrics will, according to BAWAG, reduce its fully loaded CET1 ratio by around three percentage-points. Following an on-site visit by the European Central Bank (ECB), which directly supervises BAWAG, the bank had to address shortcomings in the risk measurement for its acquired UK and French mortgage portfolios. The bank aims to reverse the resulting increase in RWA for the French portfolio (after having done so successfully for the UK asset pool). However, the restatement for the French mortgage book has led to a decline in BAWAG's restated fully loaded CET1 and Tier 1 ratios to 15.5% as of June 17 (down by 1 percentage-point). 1 November 17

4 For 18, BAWAG expects the ECB to raise its add-on capital requirement related to the Supervisory Review and Evaluation Process by 5 basis points. Together with the phase-in of Pillar 1 capital buffers, we expect BAWAG to be required to maintain a minimum Tier 1 capital ratio of 11.% in 18, plus a Pillar guidance add-on of currently 1 percentage-point. Capital requirements and guidance levels, therefore, effectively leave BAWAG's management few other choices than to stay above the management target of a 1% CET1 ratio, unless the bank opts for the issuance of Additional Tier 1 and subordinated Tier instruments that would grant additional capacity against minimum Tier 1 and total capital thresholds. In the first half of 17, BAWAG returned to booking a tax expense of 47.1 million, close to what we expect to be a normalised tax rate for the bank. Accordingly, its net income declined to.5 million versus 8.5 million in H1 16, which had been characterised by an extraordinary tax gain. Pre-tax earnings in both semesters stood at about the same level. Asset-quality risks have decreased and are manageable, yet uncertainties remain around the future performance of BAWAG's international investment and loan portfolio Any further improvement in BAWAG's asset risk assessment remains dependent on the future performance of its international assets and, more importantly, its success in growing its overall lending portfolio without changing or adding to its risk appetite. The bank's baa Asset Risk score thus reflects both the underlying development in its problem loan ratio to 1.9% as of year-end 16 ( 547 million of impaired assets), as well as continued uncertainties regarding the expansion of BAWAG's international corporate and real estate portfolios. While the historic performance of the acquired portfolios has been very solid, the aforementioned exposures can trigger large losses in a highly adverse macroeconomic scenario, especially given that these exposures represent a significant proportion of the bank's Tier 1 capital. In H1 17, BAWAG grew its securities portfolio booked as loans and receivables by more than 6 million to 1. billion and attributed this growth mainly to investments in collateralised loan obligations, an asset class that has attracted significant interest by European investors in search of higher yields. We understand that BAWAG sourced its collateralised loan obligations portfolio somewhat before a broader-based hunt for yield led to reduced risk discrimination among investors; however, we will monitor the bank's ability to keep risks from yield enhancement operations under tight control. BAWAG displayed total credit and securities exposures of 4.6 billion as of year-end 16. The bank has a sizeable corporate lending and public sector ( 1.4 billion, including international real estate financing) and investment book ( 6.7 billion). The bank's more granular exposures to the retail sector and small businesses ( 16.1 billion) reflect BAWAG's acquisitive growth in Austria (leasing business, building and loan association products, mortgage lending and real estate finance), the UK and France (retail mortgage portfolios). BAWAG s direct bank, easygroup, will start originating loans in Germany in the fourth quarter of 17 (Q4 17) and plans to expand into larger Western European markets thereafter, with its business focus lying on Austria and the neighbouring Germanspeaking countries. 4 1 November 17

5 Substantial efficiency gains stabilised and increased core earnings BAWAG has established a consistent track record of increasing the efficiency of its retail banking operations in Austria, which significantly turned to profits over the past five years. We expect BAWAG to be able to maintain its superior profitability even though future net income growth will be constrained by industrywide interest margin pressures, driven by the low interest rate environment and an intense competitive landscape in many banking business areas in the Austrian and German target markets. In addition, BAWAG will not continue to book material amounts of tax-reducing loss carryforwards from 17 onwards, leading to a significant increase in the future accounting tax burden well before the actual resumption of cash tax payments. The improved level of profitability, including our adjustment of BAWAG's 16 tax burden towards a normalised level, is captured by the assigned Profitability score. We expect that BAWAG's future earnings generation will be partly consumed by dividend payout plans. BAWAG targets a payout of 5% of consolidated net profits to its shareholder base. In addition, the remaining amount of retained earnings will not contribute sustainably to an improvement in capital ratios because such additional capital resources will need to support higher RWA, driven by BAWAG's growth targets. BAWAG operates with a comparably low adjusted cost/income that has fallen below 45%, reflecting strict and efficient cost management over the past years. This result compares very favourably with the Austrian banking sector's average that has been above 6% over the past years. We expect BAWAG to further reduce its physical presence and associated costs incurred as a bricksand-mortar retail bank in Austria with its intended exit from the distribution partnership with Austrian Post. Following a three-year notice period, BAWAG expects to operate through about 1 proprietary branches in Austria in 1, as opposed to 74 proprietary branches and 59 cooperation branches as of today. Whereas we believe BAWAG's cost savings from the contract cancelation will overcompensate the loss of revenue from client churn, a claim presented by Austrian Post for compensation of 16.5 million of past and future revenues from BAWAG adds to the bank's legal risks1. Strong access to stable retail deposits supports BAWAG's funding and liquidity profiles We expect BAWAG to be able to maintain a balanced liquidity profile. Liquid assets increased in Q4 16, following a number of periods of decline. Reduced interbank exposures were offset by improvements in medium-term liquidity following covered bond and senior unsecured debt issuances. However, the bank's liquid assets partly consist of corporate and peripheral euro-area bonds, largely exposed to highly rated investment-grade issuers. Our unadjusted baa Liquid Resources score captures the underlying quality of the liquidity portfolio and also reflects BAWAG's access to additional liquid resources based on a portfolio of loans available as collateral for funding from the ECB. BAWAG's funding profile is sound and well diversified. As of June 17, customer deposits increased 15% from a year earlier to 5.4 billion, or 64% of total assets. The bank's main funding sources are retail and, to a lesser extent, corporate deposits. In March 17, BAWAG opportunistically took a billion tranche in the ECB's targeted longer-term refinancing operations (TLTRO II). As part of its efforts to diversify funding sources, BAWAG also issued two bonds denominated in Swiss francs in October 16 and also securitised around 5 million of its UK mortgage portfolio in a residential mortgage-backed securitisation in November 16. In H1 17, BAWAG also issued a rare 5 million public-sector covered bond. The bank's loan/deposit stood at 11% as of year-end 16 (15: 114%, 14: 1%). We have incorporated these considerations in our unadjusted a Funding Structure score. 5 1 November 17

6 Support and structural considerations LGF analysis BAWAG is subject to the Austrian transposal law of the EU Bank Recovery and Resolution Directive (BaSAG), which we consider an Operational Resolution Regime. We, therefore, apply our Advanced LGF analysis, taking into consideration the risks faced by the different debt and deposit classes across the liability structure at failure. We assume residual tangible common equity of % and losses post-failure of 8% of tangible banking assets, a 5% run-off in junior wholesale deposits and a 5% run-off in preferred deposits, and we assign a 5% probability to deposits being preferred to senior unsecured debt. These ratios are in line with our standard assumptions, with the exception that in the case of BAWAG, our assumption is that only a small percentage (1%) of the bank's deposit base can actually be considered junior and qualify as bail-in-able under BaSAG. Our LGF analysis indicates a very low loss-given-failure for deposits, senior unsecured debt and the bank's issuer ratings, leading us to position their A ratings two notches above the Adjusted BCA. Our LGF analysis indicates a high loss-given-failure for subordinated debt classes, leading us to position their Baa rating one notch below the Adjusted BCA. Government support We assess the probability of government support for BAWAG as low, despite the bank's solid national market shares (in terms of loans and deposits), as well as the bank's importance to the payment and clearing systems. For Austria, in contrast to other EU countries and reflective of government measures implemented since 14, we assign a low level of support for the senior debt and deposit ratings of its banks. As a consequence, government support does not benefit BAWAG's ratings. Counterparty Risk Assessment (CR Assessment) CR Assessments are opinions of how counterparty obligations are likely to be treated if a bank fails and are distinct from debt and deposit ratings in that they (1) consider only the risk of default rather than both the likelihood of default and the expected financial loss suffered in the event of default, and () apply to counterparty obligations and contractual commitments rather than debt or deposit instruments. The CR Assessment is an opinion of the counterparty risk related to a bank's covered bonds, contractual performance obligations (servicing), derivatives (for example, swaps), letters of credit, guarantees and liquidity facilities. BAWAG's CR Assessments are positioned at A1(cr)/P-1(cr). The CR Assessment, prior to government support, is positioned three notches above the Adjusted BCA of based on the buffer against default provided to the senior obligations represented by the CR Assessment by more subordinated instruments, including junior deposits and senior unsecured debt, amounting to about 17% of tangible banking assets. BAWAG's CR Assessment does not benefit from any rating uplift based on government support, in line with our support assumptions on deposits and senior unsecured debt. About Moody's Bank Scorecard Our scorecard is designed to capture, express and explain in summary form our Rating Committee's judgment. When read in conjunction with our research, a fulsome presentation of our judgment is expressed. As a result, the output of our scorecard may materially differ from that suggested by raw data alone (though it has been calibrated to avoid the frequent need for strong divergence). The scorecard output and the individual scores are discussed in rating committees and may be adjusted up or down to reflect conditions specific to each rated entity. 6 1 November 17

7 Rating methodology and scorecard factors Exhibit BAWAG P.S.K. Macro Factors Weighted Macro Profile Strong + Factor Historic Macro Ratio Adjusted Score Credit Trend Assigned Score Key driver #1 Key driver # Unseasoned risk Solvency Asset Risk Problem Loans / Gross Loans.% a baa Sector concentration Capital TCE / RWA 16.% aa a Expected trend Profitability Net Income / Tangible Assets 1.% baa Return on assets Combined Solvency Score Liquidity Funding Structure Market Funds / Tangible Banking Assets 18.% a a Extent of market funding reliance Liquid Resources Liquid Banking Assets / Tangible Banking Assets 16.4% baa baa Additional liquidity resources a1 Balance Sheet in-scope (EUR million) 8,14 5,998,98,6, ,17 9,71 1 November 17 Expected trend Combined Liquidity Score Financial Profile Business Diversification Opacity and Complexity Corporate Behavior Total Qualitative Adjustments Sovereign or Affiliate constraint: Scorecard Calculated BCA range Assigned BCA Affiliate Support notching Adjusted BCA Other liabilities Deposits Preferred deposits Junior Deposits Senior unsecured bank debt Dated subordinated bank debt Equity Total Tangible Banking Assets 7 1% Aa1 a-baa % in-scope 1.% 66.5% 59.9% 6.7% 7.7% 1.5%.% 1% at-failure (EUR million) 1,14 4,178,8 1,95, ,17 9,71 % at-failure 5.9% 61.9% 56.9% 5.% 7.7% 1.5%.% 1%

8 Debt class Counterparty Risk Assessment Deposits Senior unsecured bank debt Dated subordinated bank debt Instrument class Counterparty Risk Assessment Deposits Senior unsecured bank debt Dated subordinated bank debt De Jure waterfall De Facto waterfall Notching LGF Assigned Additional Preliminary LGF notching Rating Instrument Sub- Instrument SubDe Jure De Facto Notching Guidance notching Assessment volume + ordination volume + ordination vs. subordination subordination Adjusted BCA 17.% 17.% 17.% 17.% a1 (cr) 17.% 4.5% 17.% 1.% a 17.% 4.5% 1.% 4.5% 1 a 4.5%.% 4.5%.% baa Loss Given Failure notching -1 Additional Preliminary Rating Notching Assessment a1 (cr) a a baa Government Support notching Local Currency Rating A1 (cr) A A Baa Foreign Currency Rating -A A -- Source: Moody's Financial Metrics Ratings Exhibit 4 Category BAWAG P.S.K. Outlook Bank Deposits Baseline Credit Assessment Adjusted Baseline Credit Assessment Counterparty Risk Assessment Issuer Rating Senior Unsecured Subordinate -Dom Curr ST Issuer Rating Moody's Rating Stable A/P-1 A1(cr)/P-1(cr) A A Baa P-1 Source: Moody's Investors Service 8 1 November 17

9 Endnotes 1 In addition, BAWAG remains involved in triple-digit million litigation with the City of Linz around a terminated swap transaction, for which the bank has built provisions that render the remaining tail risk manageable for the bank. 9 1 November 17

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11 Contacts Bernhard Held, CFA VP-Senior Analyst 11 1 November 17 CLIENT SERVICES Anatolii Dzeman Associate Analyst Americas Asia Pacific Japan EMEA