Fitch: Landesbank on watch

Fitch Ratings said it is maintaining Bayerische Landesbank, HSH Nordbank AG and WestLB AG's long- and short-term issuer default ratings on Rating Watch negative.

Bayerische's A+ long-term issuer default rating, F1+ short-term issuer default rating, A+/F1+ senior debt, A+(emr) senior market-linked securities and A subordinated lower tier II debt were maintained on Rating Watch. Fitch affirmed the bank's AAA state-guaranteed debt and AAA(emr) state-guaranteed market-linked securities.

HSH's A- long-term issuer default rating, F1 short-term issuer default rating, A-/F1 senior debt, A-(emr) senior market-linked securities and BBB+ subordinated lower tier II debt were maintained on Rating Watch. Fitch affirmed the bank's AAA/F1+ state-guaranteed debt and AAA(emr) state-guaranteed market-linked securities.

WestLB's A- long-term issuer default rating, F1 short-term issuer default rating, A-/F1 senior debt and A-(emr) senior market-linked securities were maintained on Rating Watch. Fitch affirmed the AAA state-guaranteed debt.

The banks' ratings reflect the extent to which the respective German regional states would provide support to their Landesbank in case of need, Fitch said.

The ratings were placed on Rating Watch in September 2009 to reflect their possible ownership changes as well as related decreases in their importance to their respective regional states, the agency said. The regional states have provided substantial support to the banks in the form of capital injections and/or asset guarantees during the global financial crisis.

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