Press Release

DBRS Rates 381 Members of Sparkassen-Finanzgruppe’s Institution Protection Scheme at A, Trend Pos

Banking Organizations
March 25, 2019

Following the confirmation of the floor ratings for the Sparkassen-Finanzgruppe on 21 March 2019, DBRS Ratings GmbH (DBRS) has confirmed the Long-Term Issuer Ratings of 381 members of the Institution Protection Scheme (IPS) of the Sparkassen-Finanzgruppe at ‘A’, with a Positive Trend. The Short-Term Issuer Ratings were also confirmed at R-1 (low), also with a Positive Trend. A full list of the rating actions can be found at the end of this release. The list includes 379 Sparkassen as well as Landesbank Saar and Landesbausparkasse Saar (building association).

KEY RATING CONSIDERATIONS
The floor ratings indicate that each IPS member’s Issuer Ratings is generally rated at the floor level; however, this does not prevent members from either potentially achieving higher individual ratings based on their individual credit assessment or receiving a lower rating if there is an increased likelihood of departure from the Sparkassen-Finanzgruppe. The Positive trend continues to reflect DBRS’s view that the profitability in the Sparkassen sector continues to show resilience despite the low interest rate environment, the strong asset quality of the Sparkassen, as well as the further de-risking of the Landesbanken sector and the consistent progress the group has made in improving its capital position.

The floor ratings are based on the depth and resources of the IPS. In DBRS’s view, the IPS of Sparkassen-Finanzgruppe reduces the default risk for each individual member by making financial resources available to each Group member in times of stress. However, DBRS recognises that the IPS has limitations, as it does not amount to a legal cross-guarantee. These limitations are factored into the floor ratings.

RATING DRIVERS
Given the floor rating approach, the ratings will generally move in line with those of the Sparkassen-Finanzgruppe.

Notes:
All figures are in EUR unless otherwise noted.

The principal applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (July 2018). This can be found can be found at: http://www.dbrs.com/about/methodologies

The sources of information used for this rating include SNL Financial and Company documents. DBRS considers the information available to it for the purposes of providing this rating to be of satisfactory quality.

DBRS does not audit the information it receives in connection with the rating process, and it does not and cannot independently verify that information in every instance.

Generally, the conditions that lead to the assignment of a Negative or Positive Trend are resolved within a twelve-month period. DBRS’s outlooks and ratings are under regular surveillance.

For further information on DBRS historical default rates published by the European Securities and Markets Authority (“ESMA”) in a central repository, see: http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Ratings assigned by DBRS Ratings GmbH are subject to EU and US regulations only.

Lead Analyst: Sonja Förster, Vice President - Global FIG
Rating Committee Chair: Ross Abercromby, Managing Director, Global FIG
Initial Rating Date: January 18, 2007
Last Rating Date: July 27, 2018

DBRS Ratings GmbH
Neue Mainzer Straße 75
60311 Frankfurt am Main Deutschland
Geschäftsführer: Detlef Scholz
Amtsgericht Frankfurt am Main, HRB 110259

For more information on this credit or on this industry, visit www.dbrs.com.

Ratings

Bezirkssparkasse Reichenau
Bordesholmer Sparkasse AG
Die Sparkasse Bremen AG
Erzgebirgssparkasse
Forde Sparkasse
Frankfurter Sparkasse
Hamburger Sparkasse AG
Harzsparkasse
Herner Sparkasse
Hohenzollerische Landesbank Kreissparkasse Sigmaringen
Kasseler Sparkasse
Kreis- und Stadtsparkasse Erding-Dorfen
Kreis- und Stadtsparkasse Kaufbeuren
Kreis- und Stadtsparkasse Wasserburg
Kreissparkasse Ahrweiler
Kreissparkasse Anhalt-Bitterfeld
Kreissparkasse Augsburg
Kreissparkasse Bautzen
Kreissparkasse Bersenbruck
Kreissparkasse Biberach
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  • US = Lead Analyst based in USA
  • CA = Lead Analyst based in Canada
  • EU = Lead Analyst based in EU
  • UK = Lead Analyst based in UK
  • E = EU endorsed
  • U = UK endorsed
  • Unsolicited Participating With Access
  • Unsolicited Participating Without Access
  • Unsolicited Non-participating

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