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By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

 

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2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

 

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Related Issuers
Rating Action:

Moody's places KfW IPEX-Bank's A2 deposit ratings on review for upgrade

15 Jun 2018

Frankfurt am Main, June 15, 2018 -- Moody's Investors Service has today placed on review for upgrade the A2 long-term deposit ratings of KfW IPEX-Bank GmbH (IPEX-Bank). Concurrently, the rating agency placed the bank's baa3 Baseline Credit Assessment (BCA) and its baa3 Adjusted BCA, as well as its A2(cr) Counterparty Risk Assessment on review for upgrade. The short-term P-1 deposit ratings and the short-term P-1(cr) Counterparty Risk Assessment were affirmed.

The review for upgrade placement was prompted by Moody's re-assessment of the degree of financial integration and dependency of IPEX-Bank with German government-owned Kreditanstalt für Wiederaufbau (KfW, deposits: Aaa stable). KfW's ability to financially assist its commercial banking subsidiary IPEX-Bank within European competition laws appears to be beyond the rating agency's previous expectations. During the review period, Moody's will therefore evaluate to what extent these factors could support a closer conversion of IPEX-Bank ratings with those of its parent, indicating the potential for a ratings upgrade by more than one notch upon the closure of the review.

For a full list of all affected ratings, please refer to the end of this press release.

RATINGS RATIONALE

By placing the BCA and deposit ratings on review for upgrade, Moody's has taken into account the specific characteristics of financial dependency and integration of IPEX-Bank into KfW, as well as the bank's strengthened financial metrics, particularly following various capital measures undertaken by its parent KfW in 2017.

During 2017, KfW injected €300 million capital and returned most of IPEX-Bank's 2016 after-tax profit, which is typically upstreamed through a profit & loss transfer agreement. These measures lifted IPEX-Bank's tangible common equity (TCE) to risk-weighted asset ratio to 20.2% as of December 2017 from 14.7% as of December 2016, providing stronger risk absorption buffers against IPEX-Bank's concentrated exposures to highly cyclical industry sectors. By doing so, KfW demonstrated the ability to provide financial assistance to its commercial banking subsidiary in a precautionary manner and in line with EU competition laws.

IPEX-Bank relies on a funding and liquidity framework with KfW, whereby IPEX-Bank funds itself almost exclusively through its parent at market rates. Despite this funding dependency, the rating agency considers the availability of this framework a credit strength for IPEX-Bank's overall credit profile.

During the ratings review, Moody's will re-assess the unique operational and structural interlinkages between IPEX-Bank and its parent, in particular as KfW's ability to financially assist its commercial banking subsidiary IPEX-Bank within European competition laws appears to be beyond the rating agency's previous expectations. Depending on the assessment to what extent these factors could support a closer conversion of IPEX-Bank ratings with those of its parent, IPEX-Bank's BCA and long-term deposit ratings could be upgraded by more than one notch.

WHAT COULD CHANGE THE RATING - UP / DOWN

As indicated by the rating review for upgrade, Moody's expects to upgrade, possibly by more than one notch, IPEX-Bank's ratings. If Moody's concludes that the improved capitalization and unique organizational characteristics of IPEX-Bank warrant a lower probability of default assessment for IPEX-Bank, the bank's baa3 BCA could be upgraded by more than one notch. This would also lead to higher long-term deposit ratings, as reflected in the review for upgrade.

Moody's does not expect downward pressure on the bank's ratings as indicated by the review for upgrade. However, the bank's ratings could be downgraded if the financial and funding integration of IPEX-Bank were to change or if a massive and unexpected fundamental deterioration of the bank's solvency profile results in significant pressure on the BCA. The ratings could also be downgraded if Moody's reduces the combined uplift provided by its Advanced LGF analysis and its government support assumptions, which is highly unlikely at present, though.

LIST OF AFFECTED RATINGS

Issuer: KfW IPEX-Bank GmbH

..Placed on Review for Upgrade:

....Long-term Bank Deposits, currently A2, outlook changed to Rating under Review from Stable

....Long-term Counterparty Risk Assessment, currently A2(cr)

....Adjusted Baseline Credit Assessment, currently baa3

....Baseline Credit Assessment, currently baa3

..Affirmations:

....Short-term Bank Deposits, affirmed P-1

....Short-term Counterparty Risk Assessment, affirmed P-1(cr)

..Outlook Action:

....Outlook changed to Rating under Review from Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in June 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Goetz Thurm
Vice President - Senior Analyst
Financial Institutions Group
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Carola Schuler
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

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MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY550,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​
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