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

Granular, seasoned, and geographically diversified cover pool, comprising exposures to German predominately residential mortgages and multifamily housing. The program benefits from a public commitment to maintain an overcollateralization level that is consistent with the rating. Very strong jurisdictional support and 180 days' liquidity coverage required by law. Commingling and bank account risks before the issuer's insolvency are not addressed structurally or by the German legal framework but are mitigated by the available collateralization. The mismatch between interest earned on mortgages assets and that paid on the outstanding covered bonds results in a higher overcollateralization requirement. S&P Global Ratings' stable outlook on Germany-based Wuestenrot Bausparkasse AG's (WBSK) mortgage covered bonds ("Hypothekenpfandbriefe") reflects the cushion of three unused notches of collateral-based support

...+ Granular, seasoned, and geographically diversified cover pool, comprising exposures to German predominately residential mortgages and multifamily housing. + The program benefits from a public commitment to maintain an overcollateralization level that is consistent with the rating. + Very strong jurisdictional support and 180 days' liquidity coverage required by law....

Transaction Update Report