The rating action on R+V Versicherung AG (R+V) follows the announcement of a proposed merger of DG-Bank (unrated) and GZ-Bank AG Frankfurt/Stuttgart (A+/Watch Neg/A-1), the two largest central banks of the German co-operative banking sector. It also reflects the resulting changes in R+V's ownership structure and the implications for the co-operative banking sector against the background of continuing asset quality and pressures on profitability. The two banks together control 55.9% of the share capital of R+V. Standard&Poor's will hold meetings with the R+V group and DG-Bank and GZ-Bank's respective management to discuss the proposed merger and its possible effects before assessing R+V's placement on CreditWatch. The R+V group is an integral part of the co-operative banking sector and
