S&P raises Hypo Real Estate

Standard & Poor's said it raised to A/A-1 from A-/A-2 the long-term and short-term counterparty credit ratings on Hypo Real Estate Bank International AG and its direct and indirect subsidiaries, Hypo Public Finance Bank and Hypo Pfandbrief Bank International SA, as well as those on Hypo Real Estate Bank AG.

At the same time, the agency said that the ratings were removed from CreditWatch with positive implications, where they had been placed on July 23 following the announcement of plans by Hypo Real Estate Holding (not rated), the owner of the members of the Hypo group, to take over Depfa Bank plc.

The outlook on all entities is stable.

In addition, the A+/A-1 long-term and short-term counterparty credit ratings on Depfa and its core subsidiary Depfa ACS and the A/A-1 ratings on its Depfa Deutsche Pfandbriefbank AG were affirmed, S&P said.

This results in a continued one-notch rating differential between the Hypo group members and Depfa, the agency noted.

The outlook on the Depfa entities is stable.

S&P said that the rating action follows the closing of the 100% acquisition of Depfa after receiving all necessary legal and regulatory approvals and the registration of the takeover in the commercial registers in Munich and Dublin, adding that it reflects its view that the enlarged Hypo group will have a more diversified business and financial profile than Hypo group or the Depfa group on a stand-alone basis.

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