Fitch puts Berlin Hyp on watch

Fitch Ratings said it placed Berlin Hyp AG's A+ long-term and F1 short-term issuer default ratings on rating watch negative.

“The rating action reflects our expectation that, following its acquisition by Landesbank Baden-Wuerttemberg (LBBW, A-/stable/F1), Berlin Hyp's IDRs will likely be downgraded to A- and F1, respectively, aligning them with those of LBBW. This reflects our view that Berlin Hyp's change of ownership will result in weaker shareholder support, which drives the bank's IDRs,” Fitch said in a press release.

The agency said it plans to resolve the RWN upon closing of the transaction, which LBBW expects to happen this summer.

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