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TEXT-S&P summary: DZ BANK AG Deutsche Zentral-Genossenschaftsbank
November 14, 2012 / 8:23 AM / 5 years ago

TEXT-S&P summary: DZ BANK AG Deutsche Zentral-Genossenschaftsbank

(The following statement was released by the rating agency)

Nov 14 -

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Summary analysis -- DZ BANK AG Deutsche Zentral-Genossenschaftsbank 14-Nov-2012

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CREDIT RATING: AA-/Stable/A-1+ Country: Germany

Primary SIC: Commercial banks,

nec

Mult. CUSIP6: 23338P

Mult. CUSIP6: 23338R

Mult. CUSIP6: D2785W

Mult. CUSIP6: D29113

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Credit Rating History:

Local currency Foreign currency

05-Dec-2011 AA-/A-1+ AA-/A-1+

12-Dec-2006 A+/A-1 A+/A-1

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Ratings Score Snapshot

Issuer Credit Rating AA-/Stable/A-1+

SACP a-

Anchor a-

Business Position Strong (+1)

Capital and Earnings Strong (+1)

Risk Position Adequate (0)

Funding and Liquidity Above Average

and Strong (+1)

Support 0

GRE Support 0

Group Support 0

Sovereign Support 0

Additional Factors 0

Major Rating Factors

Strengths:

-- Group credit profile based on solidarity support and a comprehensive protection scheme.

-- No. 2 market position in German retail banking.

-- Stable deposits and sizable surplus liquidity from local cooperative banks.

-- Strong capitalization from high earnings retention.

Weaknesses:

-- High cost base of the local cooperative banks.

-- Continued margin pressure in traditional core products.

-- Limited strategic leadership and execution.

Outlook

Standard & Poor’s Ratings Services’ outlook on core group members of Germany’s cooperative banking sector (Genossenschaftliche FinanzGruppe), including its main central bank DZ BANK AG Deutsche Zentral-Genossenschaftsbank (DZ BANK), is stable, reflecting our expectation that the ratings on Germany’s cooperative banking sector are unlikely to change over the next one to two years. It also reflects our opinion that the solidarity support within the sector will remain unchanged. Although we currently anticipate a weakening of economic and financial market conditions globally, we believe that the sector’s key credit metrics should remain more resilient than and superior to the average for the German banking industry.

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