Sparkassen-Finanzgruppe Hessen-Thueringen / Landesbank Hessen-Thueringen Girozentrale

Strong level of solidarity and cooperation between group members based on ownership and mutual protection scheme. Solid retail market position by member savings banks in two German states, and risk-averse relationship-based business approach by Landesbank Hessen-Thueringen (Helaba). Strong capitalization from sound earnings retention. High cost base of member savings banks. Revenue margin pressure on deposit-funded business model. Concentration risk in commercial real estate lending by Helaba. The core member banks of Germany-based Sparkassen-Finanzgruppe Hessen-Thueringen (SFHT) include the 49 regional savings banks and their 69%-owned central bank Landesbank Hessen-Thueringen Girozentrale (Helaba). The stable outlook reflects both S&P Global Ratings' assumption of continued stability in SFHT's group credit profile (GCP) and that we are unlikely to change our view of its highly

...(Editor's Note: S&P Global Ratings has identified errors that potentially affected certain funding and liquidity ratios published in its bank full analyses between July 1, 2013, and Nov. 30, 2017, and on the CreditStats Direct pages for banks on RatingsDirect. The errors potentially affected the following ratios: stable funding, broad liquid assets to short-term wholesale funding, net broad liquid assets to short-term customer deposits, and narrow liquid assets to three-month wholesale funding. The corrected ratios for this entity can be found on CreditStats Direct, located on the RatingsDirect page for Landesbank Hessen-Thnringen Girozentrale. For more information, see "Certain Bank Funding And Liquidity Ratios Corrected On RatingsDirect." The scores shown below relate to the group credit profile of Sparkassen-Finanzgruppe Hessen-Thueringen, leading to issuer credit ratings of A/Stable/A-1 on core group members. A complete ratings list appears at the end of the article, in the "Ratings...

Full Report