Fitch ups Hypo Real Estate to F1+

Fitch Ratings said it upgraded Hypo Real Estate Holding AG's short-term issuer default rating to F1+ from F1.

The outlook is stable.

The action follows the forthcoming change in the company's ownership structure whereby the German Financial Market Stabilisation Fund, acting on behalf of the Federal Republic of Germany (AAA/F1+/stable), will become the group's majority shareholder.

Fitch affirmed the company's long-term issuer default rating at A-, support rating at 1, support floor at A- and individual rating at F.

HRE Group's hybrid tier 1 securities, which were issued by Hypo Real Estate Bank International AG and Depfa Bank plc, were affirmed at CC. The recovery rating of these notes is RR5.

The upgrade reflects Fitch's view that the bank's state ownership will remain in place for at least the short to medium term, which - combined with continued liquidity support and FRG's creditworthiness - will ensure an exceptionally strong capacity for timely payment of short-term financial commitments, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.