S&P Affms SuedwestLB, L-Bank, Landesgirokasse AAA Rtgs.LONDON--(BUSINESS WIRE)--Standard & Poor's CreditWire 1/20/98-- Standard & Poor's today affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its triple-'A' ratings of Suedwestdeutsche Landesbank Girozentrale, Landeskreditbank Baden-Wuerttemberg (L-Bank), and Landesgirokasse Stuttgart (see list below). The outlooks are stable. The rating action follows the announcement that Suedwestdeutsche Landesbank (SuedwestLB), Landeskreditbank Baden-Wuerttemberg (L-Bank), and Landesgirokasse Stuttgart (LG) are expected to merge with effect from Jan. 1, 1999 to form Landesbank Baden-Wuerttemberg. The merger is subject to the approval of the respective owners. Standard & Poor's also expects to assign its triple-'A' rating to the new bank once it is established, assuming it will be a public law bank, which will benefit from Gewaehrtaegerhaftung (statutory guarantee) and Anstaltslast (maintenance obligation) on a joint and several basis from its direct owners, the federal State of Baden-Wuerttemberg, the savings bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. associations of Baden and Wuerttemberg, and the City of Stuttgart. While Gewaehrtraegerhaftung represents a guarantee for the bank's obligations in a liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy scenario, Anstaltslast states that the owners of a public institution, i.e. a Landesbank, are required under public law to maintain the bank throughout its existence in a position to fulfil all obligations as they fall due. Upon completion of the merger, with total assets of about DM430 billion, total equity of DM 18.6billion and more than 9,000 employees, Landesbank Baden-Wuerttemberg will be the second largest among the German Landesbanks, and rank among the ten largest banking groups in Germany, Standard & Poor's said. --CreditWire RATINGS AFFIRMED RATING Suedwestdeutsche Landesbank Girozentrale(a) Counterparty Counterparty The other participant, including intermediaries, in a swap or contract. ratings AAA/A-1+ Certificates of deposit AAA/A-1+ Senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. Suedwestdeutsche Landesbank Capital Markets Senior unsecured debt(b) AAA L-Bank Landeskreditbank Baden-Wuerttemberg(c) Counterparty ratings AAA/A-1+ Certificates of deposit AAA/A-1+ Senior unsecured debt AAA Subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". AAA Baden-Wuerttemberg L-Finance N.V. Senior unsecured debt(d) AAA Subordinated debt(d) AAA Landesgirokasse Stuttgart(e) Counterparty ratings AAA/A-1+ Senior unsecured debt AAA (a) support: Federal State of Baden-Wuerttemberg (b) guarantor guarantor n. a person or entity that agrees to be responsible for another's debt or performance under a contract, if the other fails to pay or perform. (See: guarantee) GUARANTOR, contracts. He who makes a guaranty. 2. : Suedwestdeutsche Landesbank Girozentrale (c) guarantor: Federal State of Baden-Wuerttemberg (d) guarantor: L-Bank Landeskreditbank Baden-Wuerttemberg (e)support: Federal State of Baden-Wuerttemberg CONTACT: Michael Zlotnik, Frankfurt (49) 69-138709-18 Stefan Best, Frankfurt (49) 69-138709-16 Susan Riska, London (44) 171-826-3526 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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