S&P: Allgemeine Hypothekenbank Rheinboden unchanged

Standard & Poor's said its long-term and short-term ratings on Allgemeine Hypothekenbank Rheinboden AG (AHBR, BB+/negative/B) are not affected by the bank's announcement outlining its restructuring plans following the takeover by U.S. based opportunity fund, Lone Star Funds.

S&P noted the key elements of the restructuring and future strategic focus on predominantly domestic commercial real estate lending, as well as the recent announcement of AHBR's expected net loss of €1.1 billion-€1.3 billion for 2005, and the subsequent recapitalization of AHBR, had already been factored into its decision on Dec. 16 to affirm its ratings on AHBR.

The agency added it believes that the necessary restructuring of AHBR's activities will remain a difficult process, fraught with significant execution risk.

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