This report does not constitute a rating action. Overview Key strengths Key risks Legally binding statutes imply almost certain likelihood of support by the German State of North Rhine-Westphalia (NRW). Business limits as a nonbank workout entity to be terminated medium term. Public policy role with a strong track record in facilitating the workout of former WestLB AG and winding up transferred risk positions. Prospective increasing losses due to the shrinking asset base, leading to lower net interest income and higher capital depletion. Our ratings on Erste Abwicklunganstalt (EAA) reflect our expectation that NRW (AA/Stable/A-1+) would provide support under any scenario. For instance, we believe EAA’s owners would be supportive if continuing losses were to exceed EAA’s capital base. However,
