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Fitch Rates State of Bremen's EUR500m Bond 'AAA(EXP)'
May 26, 2016 / 9:47 AM / in a year

Fitch Rates State of Bremen's EUR500m Bond 'AAA(EXP)'

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: State of Bremen here FRANKFURT/LONDON/WARSAW, May 26 (Fitch) Fitch Ratings has assigned the State of Bremen's EUR500m fixed-rate bond (DE000A1680M0), due 30 May 2023, an expected Long-term local currency rating of 'AAA(EXP)'. The senior unsecured issue will rank pari passu with all Bremen's other outstanding debt. The final rating is contingent upon the receipt of final documents conforming to information already received. KEY RATING DRIVERS The rating reflects the strong mutual support mechanisms that apply to all members of the German Federation, including the State of Bremen, and the extensive liquidity facilities they benefit from, which ensure timely debt and debt service payment. The support mechanisms apply uniformly to all members of the German Federation: the Federal Republic of Germany (AAA/Stable/F1+) represented by the federal government (Bund) and the 16 federated states, which include the State of Bremen undertaking this issue. All Laender are equally entitled to financial support in the event of financial distress, irrespective of differences in economic and financial performances. The State of Bremen is located in northern Germany and had a population of about 663,600 inhabitants at end-2015. The city-state is the smallest of 16 German states and consists of the cities Bremen and Bremerhaven. Its EUR31.6bn GDP accounted for 1% of national GDP in 2015. Its GDP per capita of EUR47,603 is the second-highest among German states and 28% above Germany's average. The new EUR500m issue's liquidity is underpinned by the safe cash management system the Laender operate in, which allows overnight cash exchanges between Laender and the Bund when necessary, and recourse to appropriate short-term credit lines. The issue is zero risk-weighted and European Central Bank repo-eligible. RATING SENSITIVITIES A negative rating action would be triggered by a change in the ratings of Germany. A change in the support scheme would result in a review of the rating. The presale report is available on www.fitchratings.com. Contact: Primary Analyst Guido Bach Senior Director +49 69 768076 111 Fitch Deutschland GmbH Neue Mainzer Strasse 46-50 D-60311 Frankfurt am Main Secondary Analyst Dorota Dziedzic Director +48 22 338 62 96 Committee Chairperson Christophe Parisot Managing Director +33 1 44 29 91 34 Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com. Date of Relevant Rating Committee: 3 May 2016 Additional information is available on www.fitchratings.com Applicable Criteria International Local and Regional Governments Rating Criteria - Outside the United States (pub. 18 Apr 2016) here Additional Disclosures Solicitation Status here Endorsement Policy here ail=31 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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