Wirtschafts- Und Infrastrukturbank Hessen (WIBank)

The stable outlook on Wirtschafts- und Infrastrukturbank Hessen (WIBank) reflects that on the State of Hesse. We believe the bank's status as Hesse's key tool in implementing economic and social development policies, and its explicit guarantee, will not change over the medium term. Any negative rating action on Hesse would trigger a similar one on WIBank. In addition, a material weakening of the bank's key policy role for, or link to, the state could also constrain the rating. For example, changes to WIBank's guarantee or ownership structure, or a significant portion of promotional lending being channelled through other institutions could prompt a negative rating action. We could raise the ratings on WIBank if we took a similar rating action on

...Key strengths Key risks Almost certain likelihood of timely and sufficient extraordinary support from Hesse's government in an event of financial distress. Complex structure as an "institute-within-institute," relying on Helaba's banking license and various support services. Critical public policy role for, and integral link with, the government because it is a quintessential tool for the implementation of the government's economic policy objectives. Relatively small and almost no "own"/separate tangible capital (Helaba umbrella fulfils all capital requirements for WI Bank). Twofold guarantee mechanism covers liabilities....

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