Research Update: Outlook On S-Finanzgruppe Hessen-Thueringen Members Now Positive On Improving Capitalization; 'A/A-1' Ratings Affirmed

The consolidated capital ratios of S-Finanzgruppe Hessen-Thueringen (SFHT) have further strengthened, thanks to ongoing earnings retention and moderate loan growth. SFHT includes Landesbank Hessen-Thueringen (Helaba) and 49 savings banks in the German states of Hesse and Thuringia. We are revising our outlook to positive from stable and affirming the long- and short-term ratings on all the SFHT entities at 'A/A-1'. We are affirming the ratings on the grandfathered guaranteed senior subordinated debt issued by Helaba. The positive outlook reflects our expectation that our risk adjusted capital ratio could sustainably surpass the 15% threshold over the next 12-24 months, and that this might signal greater overall resilience to periods of stress. On Aug. 21, 2018, S&P Global Ratings revised its outlook

...+ The consolidated capital ratios of S-Finanzgruppe Hessen-Thueringen (SFHT) have further strengthened, thanks to ongoing earnings retention and moderate loan growth. + SFHT includes Landesbank Hessen-Thueringen (Helaba) and 49 savings banks in the German states of Hesse and Thuringia. + We are revising our outlook to positive from stable and affirming the long- and short-term ratings on all the SFHT entities at 'A/A-1'. + We are affirming the ratings on the grandfathered guaranteed senior subordinated debt issued by Helaba. + The positive outlook reflects our expectation that our risk adjusted capital ratio could sustainably surpass the 15% threshold over the next 12-24 months, and that this might signal greater overall resilience to periods of stress....

Research Update