KfW

Almost certain likelihood of support from the Federal Republic of Germany. The German government provides explicit guarantees of KfW's financial liabilities, which we regard as timely in practice. Legal maintenance obligation and dedicated role as key development bank, as evidenced through KfW's role during the COVID-19 pandemic. Low profit margins in delegated business fields, mitigated by a legal ban on dividend payouts. Pandemic-related effects on the valuation results are weighing on profitability. The stable outlook reflects the outlook on Germany (unsolicited AAA/Stable/A-1+). All else remaining equal, any rating action on Germany will be followed by a similar action on KfW. It also reflects our expectation that KfW will remain an integral part of the government's economic development policies. This should

...Strengths: Weaknesses: + Almost certain likelihood of support from the Federal Republic of Germany. + The German government provides explicit guarantees of KfW's financial liabilities, which we regard as timely in practice. + Legal maintenance obligation and dedicated role as key development bank, as evidenced through KfW's role during the COVID-19 pandemic. + Low profit margins in delegated business fields, mitigated by a legal ban on dividend payouts. + Pandemic-related effects on the valuation results are weighing on profitability. Outlook The stable outlook reflects the outlook on Germany (unsolicited ###/Stable/A-1+). All else remaining equal, any rating action on Germany will be followed by a similar action on KfW. It also reflects our expectation that KfW will remain an integral part of the government's economic development policies. This should enable the bank to maintain its public law status and secure ongoing federal government support, either through its legal maintenance obligation...

Full Report