Fitch Assigns Laender 43 'AAA' Rating


Link to Fitch Ratings' Report: Laender 43FRANKFURT/PARIS/LONDON, October 23 (Fitch) Fitch Ratings hasassigned Laender 43's EUR1.0bn bonds, due 23 October 2023, a Long-term rating of'AAA'. The bonds will be issued by a group of six German federated states(Laender). This is the 43rd joint issue of the German Laender and the 31st to be ratedby Fitch. KEY RATING DRIVERSThe rating reflects the strong support mechanisms that apply toall members of the German Federation, including the six German federated statesinvolved in the joint issue, and the extensive liquidity facilities they benefitfrom, which ensure timely debt and debt service payment. Fitch notes that the support mechanisms apply uniformly to allmembers of the German Federation: the Federal Republic of Germany (AAA/Stable)represented by the federal government (Bund) and the 16 federated states, whichinclude the six states undertaking the issue: Bremen, Hamburg,Mecklenburg-Vorpommern, Rheinland-Pfalz, Saarland and Schleswig-Holstein. All Laenderare equally entitled to financial support in the event of financial distressirrespective of differences in economic and financial performance.Each state is liable for its individual share in the issue, theproceeds of which are to be divided between the participating states asfollows: State of Bremen: EUR125mState of Hamburg: EUR250mState of Mecklenburg-Vorpommern: EUR125mState of Rheinland-Pfalz: EUR125mState of Saarland: EUR125mState of Schleswig-Holstein: EUR250mThe State of Schleswig-Holstein is the paying agent. The issue'sliquidity is underpinned by the safe cash management system the Laenderoperate in, which allows overnight cash exchanges between Laender and the Bundwhen necessary, and recourse to appropriate short-term credit lines. The issue iszero risk-weighted and European Central Bank (ECB) repo-eligible.The objective of the Laender's jumbo joint issue is to offerinvestors a sizeable and liquid bond with portfolio exposure to severalissuers.RATING SENSITIVITIESA negative rating action would be triggered by a change in theratings of Germany. Any change in the support scheme would require a reviewof the rating.The new issue report is available on">">"> AnalystGuido BachSenior Director+49 69 768076 111 Fitch Deutschland GmbH Taunusanlage 17, 60325 Frankfurt am MainSecondary AnalystDorota DziedzicDirector+48 22 338 62 96Committee ChairpersonChristophe ParisotManaging Director+33 1 44 29 91 34Media Relations: Peter Fitzpatrick, London, Tel: +44 20 35301103, Email: information is available at">">"> criteria 'Tax-Supported Rating Criteria', dated 14August 2012, and 'International Local and Regional Governments Rating Criteria',dated 9 April 2013, are available at">">"> Criteria andALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS ANDDISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THISLINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION,RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLEON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS,CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'SCODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATEFIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLEFROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHERPERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES.DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN ANEU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUERON THE FITCH WEBSITE.

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