Following a review of BHW Bausparkasse AG Hameln (BHW) under Standard&Poor's revised bank criteria (published on Nov. 9, 2011), we have lowered our ratings on BHW to 'BBB' from 'A-' and affirmed our 'A-2' short-term rating. The outlook is stable. In our view, BHW has a weak business position, strong capital and earnings, a weak risk position, average funding, and adequate liquidity, which reflects a stand-alone profile (SACP) of 'bbb-'. The ratings benefit from one notch of uplift from the SACP because we consider BHW to be a moderately strategic entity for its majority owner Deutsche Bank AG. The stable outlook is based on our expectation that BHW will maintain its strong capital position and stable funding base.
