Fitch Affirms Landesbank Berlin AG's Public Sector Pfandbriefe at 'AAA'; Withdraws Rating

Mon Feb 24, 2014 12:15pm EST

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(The following statement was released by the rating agency) FRANKFURT/LONDON, February 24 (Fitch) Fitch Ratings has affirmed Landesbank Berlin AG's (LBB, A+/Stable/F1+) public sector Pfandbriefe at 'AAA' with a Stable Outlook. The ratings have subsequently been withdrawn because the agency will no longer have sufficient information to maintain the ratings as the issuer has chosen to stop participating in the rating process. Fitch will no longer provide a rating or analytical coverage for LBB's public sector Pfandbriefe. KEY RATING DRIVERS The ratings are based on LBB's Long-Term Issuer Default Rating of 'A+', the Discontinuity Cap (D-Cap) of 5 (low risk) and the overcollateralisation (OC) that Fitch takes into account in its analysis (lowest OC during the last 12 months), which is currently 100.8%, supporting a 'AAA' rating on a probability of default (PD) basis for the covered bond programme. As of end-September, LBB's EUR1.2bn outstanding public sector Pfandbriefe were secured by a cover pool of EUR2.7bn. LBB's public sector Pfandbriefe rating is credit linked to Germany (AAA/Stable/F1+) as around 81% of the cover assets are either directly exposed to or guaranteed by the German sovereign or its federal states. All liabilities and assets are euro-denominated. The programme's interest rate position is well matched, as around 17% of the assets are floating rate compared with 16.0% of the Pfandbriefe. Fitch has taken these mismatches into account in modeling the expected cash flows by applying appropriate stresses. The existing market risks are not mitigated by privileged derivatives. Contact: Primary Analyst Mathias Pleissner Associate Director +49 69 76 80 76 133 Fitch Deutschland GmbH Taunusanlage 17 60325 Frankfurt Secondary Analyst Oliver Issl Associate Director +49 69 76 80 76 122 Committee Chairperson Helene Heberlein Managing Director +33 1 44 29 9140 Media Relations: Christian Giesen, Frankfurt am Main, Tel: +49 69 768076 232, Email: christian.giesen@fitchratings.com. Additional information is available at www.fitchratings.com. Applicable criteria: 'Covered Bonds Rating Criteria', dated 04 September 2013, 'Asset Analysis Criteria for Covered Bonds of European Public Entities', dated 30 January 2013, 'Counterparty Criteria for Structured Finance and Covered Bonds', dated 13 May 2013 and 'Covered Bonds Rating Criteria - Public Sector Liquidity and Refinancing Stress Addendum', dated 07 February 2014 are available at www.fitchratings.com. Applicable Criteria and Related Research: Covered Bonds Rating Criteria here Asset Analysis Criteria for Covered Bonds of European Public Entities here Counterparty Criteria for Structured Finance and Covered Bonds here Covered Bonds Rating Criteria – Public Sector Liquidity and Refinancing Stress Addendum 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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