Ownership support from Deutsche Postbank. Relative robustness of domestic granular homeowner financings. Steady inflow of granular retail deposits. Difficult domestic markets with high competition. Weak medium-term earnings prospects. High interest rate and related model risk and a lack of business diversification. The ratings on Germany-based BHW Bausparkasse AG, Hameln (BHW B) are based on its strategic importance to, and full ownership by, Deutsche Postbank AG (Postbank; A-/Positive/A-2). The ratings also reflect BHW B's granular and highly collateralized domestic retail-lending portfolio, the absence of house price inflation in Germany, and a more robust domestic market resilience against the harsh 2009 recession than Standard&Poor's Ratings Services initially expected, which should restrict BHW B's credit losses to manageable levels overall. Expected
