Fitch rates Laender bonds AAA

Fitch Ratings said it assigned an expected long-term AAA rating to Laender 56's €1 billion fixed-rate bonds due Feb. 13, 2029.

The bonds will be issued by a group of five German federated states, or Laender, Fitch explained.

The expected rating reflects the strong support mechanisms that apply to all members of the German Federation, including the five German federated states involved in the joint issue, the agency said.

The rating also considers the extensive liquidity facilities they benefit from, which ensure timely debt and debt-service payment, Fitch said.

Each state is liable for its individual share in the issue, the agency noted.

The proceeds of €200 million each will received by the participating states, including Bremen, Hamburg, Rheinland-Pfalz, Saarland and Schleswig-Holstein.

The objective of the Laender's jumbo joint issue is to offer investors a sizable and liquid bond with portfolio exposure to several issuers, Fitch said.

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