Nov 20 - Fitch Ratings has assigned Issuer Default Ratings (IDRs) of 'A/F1'to Goldman Sachs International Bank (GSIB), a wholly-owned subsidiary of The Goldman Sachs Group, Inc. (Goldman). The Rating Outlook for GSIB is Stable, in line with Fitch's Rating Outlook of Goldman. RATING RATIONALE IDRs of GSIB are equalized with Goldman's IDRs reflecting Fitch's view that GSIB is core to Goldman's business strategy and operations. Fitch believes Goldman would fully support GSIB in the event of need. GSIB is a key part of Goldman's international operations acting as a primary European bond dealer; originating, trading and syndicating loans; conducting securities borrowing/lending activities; and offering multi-currency deposits. GSIB is a core part of Goldman's international expansion efforts. Fitch believes there is a high level of management/operational integration between GSIB and other core Goldman operations. GSIB maintains prudent liquidity and capitalization which are augmented by the capacity to tap liquidity and additional capital from Goldman. RATING DRIVERS AND SENSITIVITIES Given Fitch's view that GSIB is a core subsidiary of Goldman, IDRs of GSIB would change in conjunction with any changes to Goldman's IDRs. In the event that Fitch no longer considers GSIB as a core part of Goldman's operations, ratings of GSIB could be negatively affected. Goldman's IDRs were affirmed on Oct. 10, 2012 with a Stable Outlook as part of Fitch's Global Trading and Universal Bank (GTUB) periodic review. IDRs continue to be supported by Goldman's leading investment banking franchise, strong risk management, solid liquidity position, and better-than-average capital position. These factors are reflected in Goldman's Viability rating of 'a'. Goldman's IDRs are further underpinned by the prospect of U.S. government support in the event of need. Goldman's IDRs have limited upward potential, given Goldman's business focus on the capital markets. Goldman's IDRs could be negatively pressured if both its financial profile deteriorates and Fitch's view of support changes. Please see the press commentary 'Fitch Affirms Goldman Sachs' IDRs at 'A/F1'; Outlook Stable' dated Oct. 10, 2012 available at www.fitchratings.com for additional details. Fitch assigns the following ratings with a Stable Outlook Goldman Sachs International Bank --Long-term IDR at 'A'; --Short-term IDR at 'F1'. Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings. Applicable Criteria and Related Research: --'Additional information is available at 'www.fitchratings.com'. Applicable Criteria and Related Research: --'Global Financial Institutions Rating Criteria' (Aug. 15, 2012); --'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012). Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria Rating FI Subsidiaries and Holding Companies
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