MOODY'S REVIEWS FOR POSSIBLE DOWNGRADE LONG-TERM UNSECURED AND DEPOSIT RATINGS OF WEST LB AG, HSH NORDBANK, AND LANDESBANK RHEINLAND-PFALZ AND THEIR RESPECTIVE SUBSIDIARIES FOLLWING THE REVIEW OF THE Aa1 RATING OF THE STATE OF NORDRHEIN-WESTFALEN
Moody's Investors Service placed under review for possible downgrade the Aa1 long-term unsecured and deposit ratings of WestLB AG, HSH Nordbank AG and Landesbank Rheinland Pfalz GZ and their respective subsidiaries (please see below for the full list of affected subsidiaries). The Aaa covered-bond ratings for HSH Nordbank (Mortgage Pfandbirefe issued as Hamburgische Landesbank), Landesbank Rheinland-Pfalz (Mortgage and Public-sector Pfandbriefe) and WestLB Covered Bond Bank plc (Asset Covered Securities) and the short-term deposit ratings of Prime-1 of all three banks and their RESPECTIVE subsidiaries are confirmed with a stable outlook. WestLB's D- and HSH Nordbank’s C+ financial strength ratings as well as HSH Nordbank’s A3 ratings for its hybrid Tier I securities (SPARCS and RESPARCS) remain on review for possible downgrade.
The rating actions followed the review for possible downgrade of the Aa1 long-term ratings of the State of Nordrhein-Westfalen (NRW). The ratings of WestLB’s and its supported subsidiaries’ liabilities are based on two support mechanisms, known as Anstaltslast (a maintenance obligation) and Gewaehrtraegerhaftung (owner's statutory obligation), provided by the State of NRW.
HSH Nordbank’s and Landesbank Rheinland-Pfalz’s long-term ratings reflect the material co-ownership by WestLB and consequently ultimately the benefit of the indirect guarantee by the Land of NRW.
The following ratings were placed under review for possible downgrade:
- WestLB AG: Aa1 Senior unsecured, deposit and subordinated ratings.
- WestLB Finance Netherlands B.V.: Aa1 Senior unsecured and subordinated debt ratings.
- WestLB Finance Curacao NV: Aa1 Senior unsecured and subordinated debt ratings.
- Westdeutsche Landesbank (Europa) AG: Aa2 Senior unsecured debt rating
- WestLB AG NY Branch: Aa1 senior unsecured and subordinated debt rating
- WestLB (Europa) Financial Services PLC: Aa2 Senior unsecured debt ratings.
- WestLB Covered Bond Bank: Aa1 Senior unsecured and deposit ratings.
-HSH Nordbank AG: Aa1 senior unsecured, deposit and subordinated ratings.
-Hamburgische Landesbank: Aa1 Senior unsecured, Subordinated debt ratings.
- Hamburgische Landesbank Finance (Guernsey) Ltd: Aa1 Senior unsecured, Subordinated debt ratings.
- Landesbank Schleswig-Holstein: Aa1 Senior unsecured and subordinated debt ratings.
- Landesbank Schleswig-Holstein Finance BV: Aa1 Senior unsecured and
Subordinated debt ratings.
- HSH Nordbank, Luxembourg Branch: Aa1 Senior unsecured and Subordinated debt ratings.
- HSH Nordbank London Branch: Aa1 Senior unsecured and subordinated debt ratings.
- HSH N Finance (Guernsey) Ltd: Aa1 Senior unsecured and Subordinated debt ratings.
- Landesbank Rheinland Pfalz GZ: Aa1 Senior unsecured and Subordinated debt and Long-term deposit and Long-term Issuer ratings.
- Landesbank Rheinland-Pfalz Finance B.V.: Aa1 Senior unsecured debt ratings.
- Landesbank Rheinland-Pfalz International SA: Aa1 Senior unsecured debt ratings.
- Landesbank Rheinland-Pfalz GZ, Luxembourg Branch: Aa1 Senior unsecured debt ratings.
We confirm the following ratings:
- WestLB AG, WestLB AG, NY Branch and WestLB Covered Bond Bank: P-1 Short-term deposit and debt ratings.
- WestLB Covered Bond Bank: Aaa ACS ratings.
- HSH Nordbank, HSH Norbank Luxembourg Branch: P-1 Short-term debt and deposit rating
- Hamburgische Landesbank: Aaa Mortgage Pfandbriefe.
- Hamburgische Landesbank Finance (Guernsey) Ltd, Landesbank Schleswig-Holstein, Landesbank Schleswig-Holstein Finance BV, HSH Nordbank London Branch, HSH Nordbank Finance (Guernsey) Ltd, HSH Nordbank New York Branch: P-1 Short-term debt ratings.
- Landesbank Rheinland Pfalz GZ: P-1 Short-term debt and deposit rating and Aaa Mortgage and Public-sector Pfandbriefe and C FSR.
- Landesbank Rheinland-Pfalz Finance B.V.,Landesbank Rheinland-Pfalz Iternational SA: P-1 Short-term debt ratings.
WestLB AG, based in Dusseldorf, Germany, is the country's eighth-largest banking group. As of 31 December 2002, the WestLB group had consolidated assets of EUR265 billion. HSH Nordbank AG, headquartered in Hamburg/Kiel, is the result of the merger of Landesbank Schleswig-Holstein and Hamburgische Landesbank with total assets of €180 billion as at June 30, 2003. Landesbank Rheinland-Pfalz, headquartered in Mainz, had assets of €70 billion at year-end 2002.
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