The ratings on Germany-based BHW Bausparkasse AG, Hameln (BHW B) reflect the bank's sound asset quality and credit-loss record, stable funding sources, and capital levels, which are still regarded as sound given the bank's risk profile. The ratings also take into consideration BHW B's low profitability as a result of the low interest rate environment. In addition, the ratings reflect the weakened capital base of the BHW group, following substantial support by BHW B's parent, BHW Holding AG, in favor of Allgemeine Hypothekenbank Rheinboden AG (AHBR; see separate full analysis available on RatingsDirect, Standard&Poor's Web-based credit analysis system). With total assets of €38.1 billion at Dec. 31, 2003, BHW B is Germany's second-largest private buildings savings bank (Bausparkasse)
