...Strengths: Weaknesses: + Public policy role with good track record in facilitating the workout of former WestLB AG and winding up of all transferred risk positions. + Integral link to the German State of North Rhine-Westphalia because of the ownership structure and state support mechanism. + Business limits as a nonbank workout entity. + Prospective increasing net losses due to shrinking asset base leading to lower net interest income and higher capital depletion. Outlook S&P Global Ratings' stable outlook on Erste Abwicklungsanstalt (EAA) reflects that we do not expect changes to the ownership structure or strong commitment of the German State of North Rhine-Westphalia (NRW; ##/Stable/A-1+) in the next two years. The stable outlook on EAA mirrors our outlook on NRW, projecting the recovery beyond 2022 to balance out risks from NRW's weaker budgetary performance due to the COVID-19 crisis. If we conclude that its budget shows a stronger and more protracted weakening than we currently expect,...
