Germany

Fitch yesterday (Tuesday) affirmed the ratings of Hypo Real Estate’s operating subsidiaries at A- with a stable outlook.

Landesbank Baden-Württemberg today (Wednesday) launched the first jumbo Pfandbrief since 26 August last year, a five year transaction that is set to be priced this afternoon at the tight end of guidance.

Standard & Poor’s has put HSH Nordbank’s long term A rating on CreditWatch negative because it is concerned about the bank’s exposure to the shipping industry, which the rating agency said has a bleak outlook.

Standard & Poor’s yesterday changed from stable to negative its outlook on Norddeutsche Landesbank and its wholly-owned subsidiaries, Norddeutsche Landesbank Luxembourg and NordLB Covered Finance Bank. The long term ratings were affirmed.

All operating members of Hypo Real Estate Group were yesterday (Monday) downgraded by Moody’s, and the outlook on their ratings changed to negative.

Fitch has updated its model for rating Dutch residential mortgage-backed transactions, and proposed changes to its methodology for German residential mortgage-backed transactions that assume sharper falls in value in the event of a forced sale.

Fitch on Friday affirmed Wüstenrot Bank’s four outstanding public sector Pfandbriefe at AAA and removed them from negative review.

Real money demand and a strong domestic bid coupled with healthy participation from foreign investors contributed to a successful move into the unguaranteed senior debt market by Commerzbank on Friday.

As of today (Monday) the Association of German Pfandbrief Banks is publishing separate yield curves for mortgage and public sector covered bonds.

Commerzbank will today (Friday) price the first unguaranteed senior unsecured bond from a German issuer since the collapse of Lehman Brothers.

Proposed amendments to the Pfandbrief Act were met with approval during a hearing on the draft law on “the further development of Pfandbrief legislation” last Wednesday.

The German government is understood to have agreed to take a majority stake in Hypo Real Estate of 50% plus one share. The move underlines the government’s commitment to the Pfandbrief, and should help reinforce it, too, said covered bond analysts.