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 a 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 (CRE) 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 institution Landesbank Hessen-Thueringen Girozentrale (Helaba). The positive outlook reflects that we could raise the issuer credit ratings on the SFHT entities by one notch over the next 12-24 months if we are certain
