COREALCREDIT BANK AG
COREALCREDIT BANK AG
COREALCREDIT BANK AG
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RISK FACTORS<br />
The purchase of Notes issued under the Programme is associated with certain risks.<br />
The information set forth below under "Risk Factors relating to <strong>COREALCREDIT</strong>" is a<br />
disclosure of the principal risk factors that may affect the Issuer's ability to fulfil its<br />
obligations under the Notes but the inability of the Issuer to fulfil its obligations under the<br />
Notes may also occur for other reasons.<br />
The information set forth below under "Risk Factors relating to the Notes" merely refers to<br />
general risks related to an investment in the Notes and does not purport to be exhaustive.<br />
In respect of Notes which require in view of their specific structure a special description of<br />
risk factors, issue specific risk factors in addition to those set forth below will be described<br />
in the Final Terms relating to such Notes.<br />
Notes to be issued under the Programme may be rated or unrated. Where an issue of Notes<br />
is rated a security rating is not a recommendation to buy, sell or hold securities and may be<br />
subject to revision or withdrawal at any time by the assigning rating organisation. Any<br />
negative change in the credit rating of the Issuer could adversely affect the trading price of<br />
the Notes.<br />
Prospective Investors should determine whether an investment in the Notes is appropriate<br />
in their particular circumstances. An investment in the Notes requires a thorough<br />
understanding of the nature of the relevant transaction. Prospective investors should take<br />
into account their current financial situation and their investment objectives before<br />
deciding whether to invest in the Notes. In this context, they should take into consideration<br />
the risks of an investment in the Notes set out below in particular, in addition to the other<br />
information contained elsewhere in this Prospectus. Prospective investors are also advised<br />
to consult their own tax advisers, legal advisers, accountants or other relevant advisers as<br />
to the risks associated with, and consequences of, the purchase, ownership and<br />
disposition of the Notes including the effect of any laws of each country of which they are<br />
residents.<br />
If one or more of the risks described below occur, this may result in material decreases in<br />
the price of the Notes or, in certain cases, in a total loss of interest and capital invested.<br />
An investment in the Notes might not be suitable for investors who have not sufficient<br />
knowledge of the finance sector.<br />
RISK FACTORS RELATING TO <strong>COREALCREDIT</strong><br />
The business model of the Issuer can generally entail risk factors that may affect the Issuer's<br />
ability to fulfil its obligations under Notes issued under the Programme. These risk factors can be<br />
divided into the following categories:<br />
Credit Risk<br />
<strong>COREALCREDIT</strong> is exposed to credit risk, i.e. the loss in value, or alternatively partial or complete<br />
write-down, of a receivable as a result of default or deterioration in the creditworthiness of a<br />
counterparty. Credit risk also comprises counterparty risk, country risk, collateral risk, settlement<br />
risk, and issuer risk:<br />
(i) Counterparty risks include possible losses on interest- and foreign currency-based derivatives<br />
and forward transactions; (ii) Country risks include the risk of possible transfer and conversion<br />
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