The counterparty credit ratings on Eurohypo AG (Eurohypo-New) reflect its improved market position and franchise as the largest mixed German mortgage bank following its recently completed merger, its longstanding expertise in domestic and international real estate lending and related transactions, and its sound market risk management. The ratings are further underpinned by the remaining risk protection against unexpected loan losses from the premerger loan portfolios of its parent companies--Deutsche Bank AG (AA-/Negative/A-1+), Commerzbank AG (A-/Negative/A-2), and Dresdner Bank AG (Dresdner; A/Negative/A-1). Eurohypo-New's ratings are constrained by its deteriorating asset quality, and only moderate capitalization and profitability levels in light of Eurohypo-New's business profile and its low level of business diversification. The 'AAA' ratings on Eurohypo-New's public sector (Öffentliche) and mortgage...
Companies mentioned in this report are:
- Hypothekenbank Frankfurt AG
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