Reuters logo
TEXT-Fitch assigns Laender 40 'AAA(exp)' expected rating
June 5, 2012 / 4:57 PM / 5 years ago

TEXT-Fitch assigns Laender 40 'AAA(exp)' expected rating

 (The following statement was released by the rating agency)	
Link to Fitch Ratings' Report: Laender 40	
 June 5 - Fitch Ratings has assigned Laender 40's EUR1.5bn bonds, due 2022,
an 'AAA(exp)' expected Long-term rating. The bonds will be issued by a group of
seven German federated states (Laender). This is the 40th joint issue of the
German Laender and the 27th to be rated by Fitch.	
The final rating is contingent upon the receipt of final documents conforming to
information already received.	
The rating reflects the strong support mechanisms that apply to all members of
the German Federation, including the seven German federated states involved in
the joint issue, and the extensive liquidity facilities they benefit from, which
ensure timely debt and debt service payment.	
Fitch notes that the support mechanisms apply uniformly to all members of the
German Federation: the Federal Republic of Germany ('AAA'/Stable/'F1+')
represented by the federal government (Bund) and the 16 federated states, which
include the seven states undertaking the issue: Bremen, Hamburg,
Mecklenburg-Vorpommern, Rheinland-Pfalz, Saarland, Schleswig-Holstein and
Thueringen. All Laender are equally entitled to financial support in the event
of financial distress irrespective of differences in economic and financial
Each state is liable for its individual share in the issue, the proceeds of
which will be divided between the participating states as follows:	
State of Bremen: EUR235m	
State of Hamburg: EUR235m	
State of Mecklenburg-Vorpommern: EUR200m	
State of Rheinland-Pfalz: EUR235m	
State of Saarland: EUR235m	
State of Schleswig-Holstein: EUR235m	
State of Thueringen: EUR125m	
The State of Bremen will be the paying agent. The issue's liquidity is
underpinned by the safe cash management system the Laender operate in, which
allows overnight cash exchanges between Laender and the Bund when necessary, and
recourse to appropriate short-term credit lines. The issue is zero risk-weighted
and European Central Bank (ECB) repo-eligible.	
The objective of the Laender's jumbo joint issue is to offer investors a
sizeable and liquid bond with portfolio exposure on several issuers.	
The presale report is available on	
Additional information is available at 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 'Tax-Supported Rating Criteria', dated 15 August 2011, and
'International Local and Regional Governments Rating Criteria', dated 5 March
2012, are available at	
Applicable Criteria and Related Research:	
Tax-Supported Rating Criteria	
International Local and Regional Governments Rating Criteria - Outside the
United States	
 (New York Ratings Team)	

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below