Available credit enhancement that well exceeds the target credit enhancement at the current rating level. Very strong jurisdictional support for covered bonds in Germany. Relatively strong credit quality of public sector assets in the cover pool. Well-matched asset and liability maturity profiles. High single-obligor concentration compared with peers. Absence of commitment for specific overcollateralization level. Commingling risk is not addressed structurally or legislatively, but mitigated through overcollateralization. S&P Global Ratings' outlook on the ratings on Germany-based UniCredit Bank AG's (UniCredit Bank) public sector covered bonds (Oeffentliche Pfandbriefe) is negative. This reflects the outlook on UniCredit Bank's long-term issuer credit rating (ICR) and the fact that there are no unused notches of uplift within the rating for jurisdictional and collateral-based support.
