The ratings on DGZ Deka Bank Deutsche Kommunalbank (DGZ Deka) draw key support from the statutory ultimate guarantee obligation (Gewährträgerhaftung) of 10 German Landesbanks. Standard&Poor's regards DGZ Deka's financial profile as sound. The 10 Landesbanks are jointly and severally responsible for DGZ Deka's obligations to the extent that the creditors are unable to obtain full payment from the bank's assets. Standard&Poor's relies less on indirect state guarantees, however, as in the case of DGZ Deka, because it believes that in cases of material changes to the current support mechanisms, direct state guarantees are the strongest form of creditor protection, as only these would give creditors a direct claim on the state guarantors. Furthermore, DGZ Deka is
