The ratings on German state-owned development bank KfW are based on an explicit federal government guarantee for KfW's liabilities. In addition, KfW--an institution incorporated under German public law--benefits from the federal government's maintenance obligation (Anstaltslast), which requires the federal government to safeguard KfW's economic health and maintain its ability to operate and meet its obligations in a timely manner. Standard & Poor's Ratings Services believes that there is an "almost certain" likelihood that KfW would receive timely and sufficient extraordinary support from the government of the Federal Republic of Germany (AAA/Watch Neg/A-1+) in an event of financial distress. In accordance with our criteria for government-related entities (GREs), we are of the view that KfW has: A "critical" role in implementing...
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