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S&P lowers Allgemeine Hypothekenbank Rheinboden
Standard & Poor's said lowered its long-term and short-term counterparty credit ratings on Germany-based Allgemeine Hypothekenbank Rheinboden AG to BB+/B from BBB-/A-3, the senior unsecured debt rating to BB+ from BBB-, the subordinated debt rating to BB from BB+ and the commercial paper rating to B from A-3.
The ratings were then placed on CreditWatch with negative implications.
S&P said it also affirmed the A-1+ rating on the bank's short-term secured debt and the AAA ratings on its senior secured bond covered by loans to public authorities and its senior secured bond covered by mortgage loans.
The downgrade and CreditWatch placement follows the announcement that Deutsche Postbank AG (A/Watch negative/A-1) plans to acquire BHW Holding AG (not rated). A fundamental condition to close the agreement is that BHW Holding's 50% stake in Allgemeine is to be separated from BHW Holding beforehand, with Allgemeine totally excluded from the acquisition.
S&P said the rating action on Allgemeine, which is currently up for sale, therefore reflects uncertainties over the bank's future ownership structure.
The ratings affirmation on Allgemeine's senior secured bonds primarily reflect the collateral and protections afforded by German insolvency and banking laws, the agency said.
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