German Bank Eurohypo 'A-/A-2' Ratings Affirmed On European Commission's Reversal Of Sale Requirement; Outlook Negative Jul 12

Standard & Poors, July 2012

Abstract
On March 30, 2012, the European Commission reversed its decision that Commerzbank AG sell Eurohypo AG as a condition of its approval of state aid. Eurohypo will instead become a run-off entity within the Commerzbank group. We assess Eurohypo as having weak business and risk positions, adequate capital and earnings, average funding, and adequate liquidity. We are affirming our 'A-/A-2' ratings on Eurohypo and its core Luxembourg subsidiary EUROHYPO Europaeische Hypothekenbank S.A. The ratings include four notches of group support owing to our view of Eurohypo's "highly strategic" importance to Commerzbank. The negative outlook reflects some remaining uncertainty regarding Eurohypo's future ownership, as well as the negative outlook on our rating on Commerzbank. FRANKFURT (Standard & Poor's) July 2, 2012--Standard...

Companies mentioned in this report are: Eurohypo AG,EUROHYPO Europaeische Hypothekenbank S.A.,Eurohypo Capital Funding Trust I,Eurohypo Capital Funding Trust II
Action: Affirmed
Action: Outlook: Negative

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Research type: News
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Eurohypo AG,EUROHYPO Europaeische Hypothekenbank S.A.,Eurohypo Capital Funding Trust I,Eurohypo Capital Funding Trust II

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