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ARCHIVE | Criteria | Structured Finance | Covered Bonds: Criteria For Rating German Pfandbriefe Jul 97
Standard & Poors, July 1997
Abstract
In November 1996, Standard&Poor's developed new criteria for rating Pfandbriefe, a special type of collateralized bond issued by certain German banks. After extensive research, application of this criteria has now been extended to Pfandbriefe issued by German public sector banks. Outstanding Pfandbriefe total about DM1.5 trillion ($867 billion), representing about 40% of the German bond market. Pfandbriefe are backed by the issuing bank's public sector or mortgage loans. Their collateral, coupled with protections afforded by German insolvency and banking laws, permit Standard&Poor's to rate some Pfandbriefe above the bank's counterparty rating. Although German mortgage banks and public sector banks are subject to the risk of failure, Standard&Poor's believes that holders of some Pfandbriefe, especially those backed by public sector loans,...
Companies mentioned in this report are: Bayerische Vereinsbank AG,Dresdner Bank AG,Hypo Pfandbrief Bank International S.A.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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