S&P cuts Allgemeine HypothekenBank

Standard & Poor's said it lowered its long-term counterparty credit rating on Allgemeine HypothekenBank Rheinboden AG to BB- from BB, following a review of the bank's progress in implementing its new business model.

At the same time, the B short-term rating was affirmed, the agency said.

The outlook is negative.

S&P said that the rating action reflects ongoing significant execution risks regarding Allgemeine HypothekenBank's restructuring process, highlighted by its difficulty in disposing of weakly profitable loan portfolios as quickly as expected.

These factors are only partly mitigated by Allgemeine HypothekenBank's increased NPL reserve coverage and its ability to issue mortgage covered bonds as a cost-efficient funding instrument, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.