S&P: Allgemeine Hypothekenbank Rheinboden still on watch

Standard & Poor's said its BB+ long-term and B short-term counterparty credit ratings on Allgemeine Hypothekenbank Rheinboden AG (AHBR) remain on CreditWatch with negative implications, where they were first placed on Oct. 25.

At the same time, S&P said it revised the CreditWatch implications on its B ratings on subordinated debt issued by AHBR to developing from negative.

The agency noted it will review the implications of the new ownership structure on AHBR following the announcement by AHBR's key shareholder BGAG Beteiligungsgesellschaft der Gewerkschaften AG that loan Star Funds will essentially take over all of the share capital of AHBR.

The revised CreditWatch on subordinated debts reflects that the risks of an imminent liquidation of AHBR and therefore risks to holders of plain-vanilla subordinated debt of incurring losses will diminish with the takeover, S&P said.

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