Germany

Moody’s on 21 December put HSH Nordbank’s A2 rating on review for downgrade, possibly of more than one notch, because it is concerned that potential sources of external support may diminish.

Issuers are limbering up to launch the first benchmark covered bonds of 2010, with three institutions having mandated for transactions that could hit the market this week and others busy with preparations.

Moody’s put the A2 ratings of WestLB and WestLB Covered Bond Bank on review for possible downgrade yesterday (Tuesday), anticipating that the bank will gradually become less systemically important.

Münchener Hypothekenbank was downgraded from Aa3 to A1 by Moody’s yesterday (Tuesday), on concerns over the bank’s capacity to absorb potential losses given a shift towards riskier commercial real estate lending in recent years.

Deutsche Hypothekenbank, Hannover, has appointed Jürgen Allerkamp chairman of the management board. The bank has also announced the departure of two board members, including Jürgen Grieger, former president of the Association of German Mortgage Banks.

Fitch affirmed the AAA rating of Deutsche Pfandbriefbank’s public sector Pfandbriefe on Friday and removed it from rating watch negative following a review of the issuer’s cover pool and an increase in overcollateralisation.

The Deutsche Bundesbank cited the bailout of Hypo Real Estate and the Eurosystem’s Eu60bn purchase programme as reasons why the covered bond market has suffered less stress than other market segments over the past two years, in its Financial Stability Review 2009 published yesterday (Wednesday). Meanwhile, settled covered bond purchases under the programme reached Eu24.979bn today (Thursday), the 100th day of reporting.

Andreas Schenk has been promoted to become head of treasury at Deutsche Pfandbriefbank (pbb), the main issuing subsidiary of the Hypo Real Estate group.

Moody’s yesterday (Thursday) placed on review for possible downgrade the long term debt ratings of Deutsche Bank, Münchener Hypothekenbank and Stadtsparkasse Düsseldorf as part of a recalibration exercise on German bank ratings.

Westdeutsche Immobilienbank sold its second Eu500m three and a half year Pfandbrief in five months yesterday (Monday). The redemption of its only outstanding jumbo next Monday was a key factor in the execution of the deal, an official at WestImmo told The Cover, but he said that the uncertain future of the issuer was not.

Westdeutsche Immobilienbank has wrapped up a Eu500m three and a half year issue this (Monday) morning and Ibercaja is soft-sounding for a similarly sized five year deal.

SEB’s mortgage and public sector Pfandbriefe have been downgraded by Moody’s from Aaa to Aa1 and left on review for further downgrade, although the rating agency said that the issuer has plans to secure the new ratings.