The ratings on Germany-based BHW Bausparkasse AG, Hameln (BHW B) are based on its strategic importance to, and full ownership by, Deutsche Postbank AG (Postbank; A-/Positive/A-2). The ratings also reflect BHW B's strong granular retail funding position, which remains a key strength against an ongoing global liquidity squeeze, and the expected relative robustness of its granular and highly collateralized homeowner financings in Germany. Expected ownership support remains pivotal, however, to alleviate BHW B's much weaker stand-alone credit profile. Standard&Poor's Ratings Services expects BHW B's operating performance to remain poor in the medium term because of the effects of a potentially severe and prolonged domestic recession, BHW B's dependence on the difficult interest rate environment, and a lack of
