KfW

This report does not constitute a rating action. Overview Key strengths Key risks Almost certain likelihood of support from the German government. Limited profit margins in delegated business fields, mitigated by a legal ban on dividend payouts. Explicit guarantee from the German government of KfW's financial liabilities, which S&P Global Ratings considers would ensure timely payment. Increasing complexity of bank regulation and new mandates, which could increase KfW's future capital requirements. Legal maintenance obligation and dedicated role as key national development bank. The coalition agreement for 2021-2025 repeatedly mentions KfW as the administrator of planned programs in support of carbon neutrality and other economic transformation initiatives. While policymakers still need to define the concrete details, we expect the bank will

...Almost certain likelihood of support from the German government. Limited profit margins in delegated business fields, mitigated by a legal ban on dividend payouts. Explicit guarantee from the German government of KfW's financial liabilities, which S&P Global Ratings considers would ensure timely payment. Increasing complexity of bank regulation and new mandates, which could increase KfW's future capital requirements. Legal maintenance obligation and dedicated role as key national development bank. The new German government has indicated a prominent role for KfW in its economic transformation agenda for the coming four years. The coalition agreement for 2021-2025 repeatedly mentions KfW as the administrator of planned programs in support of carbon neutrality and other economic transformation initiatives. While policymakers still need to define the concrete details, we expect the bank will be key to implement such programs over the coming years. This underpins even further our view of KfW's...

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