The ratings on BHW Bausparkasse AG, Hameln (BHW B) reflect the bank's very robust asset quality and credit-loss record, strong liquidity, and strong funding position due to its stable Bauspar (buildings savings) deposit base, as well as BHW B's capital levels, which are still regarded as sound given the bank's risk profile. The ratings also take into consideration, however, BHW B's modest profitability levels as a result of low margins and weak cost structures. In addition, the ratings on BHW B reflect the weakened capital base of the BHW group, following substantial support provided by BHW B's parent, BHW Holding AG, in favor of Allgemeine Hypothekenbank Rheinboden AG (AHBR; BBB/Negative/A-3; see separate full analysis available on RatingsDirect). With total assets
