Wirtschafts- und Infrastrukturbank Hessen

This report does not constitute a rating action. Overview Key strengths Key risks Almost certain likelihood of timely and sufficient extraordinary support from the State of Hesse in the event of financial distress. Complex structure as an institution-within-an-institution, relying on Landesbank Hessen-Thueringen's banking license and various support services. Critical public policy role for and integral link with the regional administration due to the bank?s role in implementing government economic policies. Almost no own or separate tangible capital, with the Helaba umbrella fulfilling all capital requirements. Two-fold guarantee mechanism covering liabilities. We do not foresee any changes to the state?s guarantee framework for the bank?s liabilities. We expect Hesse to keep using WIBank as its key agent for implementing economic and

...S&P Global Ratings anticipates that Wirtschafts- und Infrastrukturbank Hessen (WIBank) will maintain its critical public policy role as the sole development bank and primary economic promotion agency for the German state of Hesse. We do not foresee any changes to the state's guarantee framework for the bank's liabilities. We anticipate the bank's new business volume to normalize at approximately 3 billion, based on new or modified lending programs. We expect Hesse to keep using WIBank as its key agent for implementing economic and infrastructure initiatives. In our view, the bank will continue to rely on its established three-pillar funding strategy. This includes refinancing obtained from public-sector banks, private-placement-type transactions in the German domestic capital market, and occasional benchmark bond issues in the public capital market....

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