Fitch: Landesbank individual on watch

Fitch Ratings said it has placed Landesbank Saar's C individual rating on rating watch negative.

The bank's A+ long-term issuer default rating with stable outlook, F1+ short-term issuer default rating, 1 support rating and A+ support rating floor are affirmed, the agency noted.

Fitch added that Landesbank's guaranteed obligations are also affirmed at AAA.

The watch on Landesbank's individual rating of C reflects downward rating pressure from revaluation adjustments to fixed-income securities and credit default swaps, which in conjunction with additional write-downs on troubled counterparties such as the Icelandic banks, are likely to result in an operating loss for 2008, putting pressure on the bank's capitalization, the agency said.

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