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Fitch Affirms Rentenbank's and NRW.BANK's Subordinated Debt at 'AAA'
October 20, 2014 / 2:12 PM / 3 years ago

Fitch Affirms Rentenbank's and NRW.BANK's Subordinated Debt at 'AAA'

(The following statement was released by the rating agency) FRANKFURT/LONDON, October 20 (Fitch) Fitch Ratings has affirmed NRW.BANK's (AAA/Stable) and Landwirtschaftliche Rentenbank's (AAA/Stable) guaranteed subordinated debt at 'AAA'. A full list of rating actions is available at the end of this rating action commentary. KEY RATING DRIVERS AND SENSITIVITIES - SUBORDINATED DEBT The banks' subordinated debt ratings are equalised with those of their guarantors. Rentenbank's continuation as an economic entity is guaranteed by the German state through a maintenance obligation (Anstaltslast). In our view the rated subordinated debt is covered by the explicit guarantee from the Federal Republic of Germany (AAA/Stable), which came into effect on 1 January 2014 through the CRD IV-Umsetzungsgesetz. Rentenbank focuses its lending on the agriculture and agribusiness sectors in Germany. NRW.BANK provides funding for economic, social, municipal, infrastructure and housing promotion projects in the State of North Rhine-Westphalia (State of NRW; AAA/Stable), which wholly owns the bank and acts as its guarantor. NRW.BANK is also covered by a maintenance obligation from its owner, the State of NRW. Fitch believes that the support mechanisms for both banks provide similar protection to senior and subordinated debt instruments because the maintenance obligation is intended to secure the financial basis of a bank and to keep it functional, and requires the government to take action before the threat of restructuring or non-viability is allowed to materialise. Despite new regulatory and EU state aid frameworks the Outlooks on the bank's Long-term IDRs remain Stable because these banks focus on a specific policy function and benefit from state guarantees for all liabilities and solvency guarantees. The rating actions are as follows: Landwirtschaftliche Rentenbank XS0082993741 affirmed at 'AAA' XS0194344437 affirmed at 'AAA' XS0195402192 affirmed at 'AAA' XS0080533598 affirmed at 'AAA' XS0251101456 affirmed at 'AAA' NRW.BANK XS0207887711 affirmed at 'AAA' DE000NWB07Y5 affirmed at 'AAA' Contact: Primary Analyst Michael Dawson-Kropf Senior Director +49 69 76 80 76 113 Fitch Deutschland GmbH Taunusanlage 17 60325 Germany Secondary Analyst Roger Schneider Director +49 69 76 80 76 242 Committee Chairperson Gordon Scott Managing Director +44 20 3530 1075 Media Relations: Elaine Bailey, London, Tel: +44 203 530 1153, Email: Additional information is available on Applicable criteria, 'Global Financial Institutions Rating Criteria' dated 31 January 2014 and 'Banking Structures Backed by Mutual Support Mechanisms' dated 18 December 2013 are available at Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Banking Structures Backed by Mutual Support Mechanisms here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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