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 its central bank Landesbank Hessen-Thueringen (Helaba). Strong capitalization from sound earnings retention. High cost base. Revenue margin pressure on deposit-funded business model. Concentration risk in commercial real estate (CRE) lending by Helaba. The outlook is stable because we assume continued stability of Sparkassen-Finanzgruppe Hessen-Thueringen's (SFHT's) group credit profile, despite the negative economic and industry risk trends we observe in Germany. We consider that SFHT's balanced business mix of the savings banks' strong market position in retail banking and Landesbank Hessen-Thüringen Girozentrale (Helaba)'s prudent relationship-based strategy
