Implicit ownership support by Deutsche Postbank AG; Sound asset quality; Stable funding sources; and Adequate capitalization. Very weak operating profitability outlook; Earnings dependence on rising interest rates; Lack of business diversification; and Difficult domestic markets and high competition. The ratings on Germany-based BHW Bausparkasse AG, Hameln (BHW B) are based on its developing strategic importance to, and new ownership by Deutsche Postbank AG (Postbank; A/Negative/A-1). The ratings also reflect BHW B's sound asset quality, stable funding, and adequate capital. Furthermore, the ratings also take into account BHW B's weaker intrinsic risk and financial profile, reflecting its expected medium-term very weak operating earnings performance, lack of business diversity, and its low efficiency. This is expected to gradually benefit from more sound
