Transaction Update: Wuestenrot Bausparkasse AG (Mortgage Covered Bond Program)

Granular, seasoned and geographically diversified cover pool, comprising exposures to German predominately residential mortgages. Well-matched asset and liability maturity profiles. Very strong jurisdictional support and 180 days' liquidity coverage required by law. Commingling and bank account risk before the issuer's insolvency that is not addressed structurally or by the German legal framework, but is mitigated by the available collateralization. S&P Global Ratings' stable outlook on Germany-based Wuestenrot Bausparkasse AG's (WBSK) mortgage covered bonds ("Hypothekenpfandbriefe") reflects our view that a two notch lowering of our long-term issuer credit rating (ICR) would not in itself trigger a downgrade of the covered bonds, all else remaining equal. This is because the program benefits from two unused notches of uplift. We may lower our

...+ Granular, seasoned and geographically diversified cover pool, comprising exposures to German predominately residential mortgages. + Well-matched asset and liability maturity profiles. + Very strong jurisdictional support and 180 days' liquidity coverage required by law....

Transaction Update Report