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Fitch Affirms Deutsche Postbank AG's Mortgage Pfandbriefe at 'AAA'; Outlook Stable
April 15, 2014 / 4:12 PM / 3 years ago

Fitch Affirms Deutsche Postbank AG's Mortgage Pfandbriefe at 'AAA'; Outlook Stable

(The following statement was released by the rating agency) FRANKFURT/LONDON, April 15 (Fitch) Fitch Ratings has affirmed Deutsche Postbank AG's (DPB, A+/Stable/F1+) Mortgage Pfandbriefe at 'AAA' and removed them from Rating Watch Negative (RWN). The Outlook is Stable. KEY RATING DRIVERS The rating actions follow DPB publishing a voluntary public commitment on its website to maintain at least 15% nominal overcollateralisation (OC) under the mortgage covered bonds. The RWN reflected the risk that DPB would not provide such a commitment within three weeks of 24 March 2014. The Outlook is Stable despite the Negative Outlook on DPB's IDR, given that any potential downgrade of the issuer's IDR is expected to be compensated by the IDR uplift of 2. The mortgage covered bonds' rating is based on DPB's Long-Term Issuer Default Rating (IDR) of 'A+', an IDR uplift of 2, a Discontinuity Cap (D-Cap) of 4 (moderate risk) and a breakeven 'AAA' OC level of 15%. The programme is classified as dormant; therefore Fitch relies on the publicly stated level of OC. This committed level of OC supports a 'AA' rating on a probability of default basis and allows for a two-notch uplift for outstanding recoveries given default. RATING SENSITVITIES The 'AAA' rating of DPB's mortgage Pfandbriefe would be vulnerable to downgrade if any of the following occurs: (i) DPB's IDR is downgraded by five or more notches to 'BBB-' or lower; (ii) the number of notches represented by the IDR uplift and the D-Cap is reduced to 1 or lower; or (iii) the OC that Fitch considers in its analysis drops below Fitch's 'AAA' breakeven level of 15%. Contact: Primary Analyst Mathias Pleissner Director +69 768076 133 Fitch Deutschland GmbH Taunusanlage 17 D-60325 Frankfurt am Main Secondary Analyst Oliver Issl Associate Director +69 768076 122 Committee Chairperson Rebecca Holter Senior Director +69 768076 261 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 10 March 2014 , EMEA RMBS Master Rating Criteria dated 6 June 2013, EMEA Criteria Addendum - Germany dated 17 July 2013, Covered Bonds Rating Criteria - Mortgage Liquidity and Refinancing Stress Addendum dated 04 February 2014 are available at www.fitchratings.com. Applicable Criteria and Related Research: Covered Bonds Rating Criteria here EMEA RMBS Master Rating Criteria here EMEA Criteria Addendum — Germany here Covered Bonds Rating Criteria - Mortgage Liquidity and Refinance 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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