Sector cohesiveness and a regional protection scheme Sound sector capitalization Strong retail market penetration in Hesse and Thuringia The savings banks' stable retail deposit base Prudent risk governance Helaba's modest profitability and more volatile financial profile, inherent in its wholesale-centered business model The savings banks' high and inflexible cost base and exposure to margin erosion Lack of adequate incentives to improve profitability Weaknesses in high-margin retail growth products The ratings on the members of Germany's Sparkassen-Finanzgruppe Hessen-Thueringen (SFHT), which includes the 50 savings banks in the states of Hesse (AA/Stable/A-1+) and Thuringia (not rated) and their central institution Landesbank Hessen-Thueringen Girozentrale (Helaba), continue to be based on our view of SFHT as a single, cohesive economic group and on expected
