COREALCREDIT BANK AG

RISK FACTORS
The purchase of Notes issued under the Programme is associated with certain risks.
The information set forth below under "Risk Factors relating to COREALCREDIT" is a
disclosure of the principal risk factors that may affect the Issuer's ability to fulfil its
obligations under the Notes but the inability of the Issuer to fulfil its obligations under the
Notes may also occur for other reasons.
The information set forth below under "Risk Factors relating to the Notes" merely refers to
general risks related to an investment in the Notes and does not purport to be exhaustive.
In respect of Notes which require in view of their specific structure a special description of
risk factors, issue specific risk factors in addition to those set forth below will be described
in the Final Terms relating to such Notes.
Notes to be issued under the Programme may be rated or unrated. Where an issue of Notes
is rated a security rating is not a recommendation to buy, sell or hold securities and may be
subject to revision or withdrawal at any time by the assigning rating organisation. Any
negative change in the credit rating of the Issuer could adversely affect the trading price of
the Notes.
Prospective Investors should determine whether an investment in the Notes is appropriate
in their particular circumstances. An investment in the Notes requires a thorough
understanding of the nature of the relevant transaction. Prospective investors should take
into account their current financial situation and their investment objectives before
deciding whether to invest in the Notes. In this context, they should take into consideration
the risks of an investment in the Notes set out below in particular, in addition to the other
information contained elsewhere in this Prospectus. Prospective investors are also advised
to consult their own tax advisers, legal advisers, accountants or other relevant advisers as
to the risks associated with, and consequences of, the purchase, ownership and
disposition of the Notes including the effect of any laws of each country of which they are
residents.
If one or more of the risks described below occur, this may result in material decreases in
the price of the Notes or, in certain cases, in a total loss of interest and capital invested.
An investment in the Notes might not be suitable for investors who have not sufficient
knowledge of the finance sector.
RISK FACTORS RELATING TO COREALCREDIT
The business model of the Issuer can generally entail risk factors that may affect the Issuer's
ability to fulfil its obligations under Notes issued under the Programme. These risk factors can be
divided into the following categories:
Credit Risk
COREALCREDIT is exposed to credit risk, i.e. the loss in value, or alternatively partial or complete
write-down, of a receivable as a result of default or deterioration in the creditworthiness of a
counterparty. Credit risk also comprises counterparty risk, country risk, collateral risk, settlement
risk, and issuer risk:
(i) Counterparty risks include possible losses on interest- and foreign currency-based derivatives
and forward transactions; (ii) Country risks include the risk of possible transfer and conversion
32