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Global Credit Research Financial Institutions May 29, 2007 Sector Report - Summary of Moody's JDA For Banks FRENCH AND GERMAN BANKS AFFECTED BY MOODY'S JDA REVISION (MAY 11) Germany Company Ticker Country Moody's old BFSR Bayerische Hypo- und Vereinsbank AG, CA IB International Markets AG, Bayerische Hypo- und Vereinsbank AG Milan Branch See last pages for disclaimer. 12 Moody's new BFSR Moody's old LTR Moody's new LTR (JDA) S&P LTR Fitch LTR BAYERISCHE HYPO-UND VEREINSB CRDIT DE D+ C- A2 A1 A A BAYERISCHE LANDESBANK BYLAN DE D+ C- Aa2 Aa2 A A+ BREMER LANDESBANK KREDITANS NDB DE C C A1 Aa2 -- A COMMERZBANK AG CMZB DE C+ C+ A2 Aa3 A- A DEKABANK DEUTSCHE GIROZENTR DEKA DE C C Aa3 Aa2 A A- DEUTSCHE APOTHEKER- UND AERZ DAA DE C+ C+ A2 A1 A+ A+ DEUTSCHE BANK AG-REGISTERED DB DE B- B Aa3 Aa1 AA- AA- DEUTSCHE POSTBANK AG DPW DE C+ C+ A1 Aa2 A A DRESDNER BANK AG ALZ DE C C A1 Aa2 A+ A DZ BANK AG DEUTSCHE ZENTRAL- DZBK DE C- C- A2 Aa3 A+ A+ HSH NORDBANK AG HSHN DE C C A1 Aa2 A A IKB DEUT INDUSTRIEBANK AG IKB DE B- C+ Aa3 Aa3 -- A+ LANDESBANK BADEN-WUERTTEMB LBBW DE B- C+ Aa1 Aa1 A+ A+ LANDESBANK BERLIN AG LBBER DE D+ D+ A1 A1 dev. -- BBB+ LANDESBANK HESSEN-THURINGEN HESLAN DE C C- Aa2 Aa2 A A+ LANDESBANK SAAR BYLAN DE C- C- Aa2 Aa2 -- A+ LANDESBANK SACHSEN GIROZENTR LBSACH DE C- C- A1 Aa2 BBB+ A+ LRP LANDESBANK RHEINLAND-PFA LBBW DE C C Aa2 Aa1 NR A NORDDEUTSCHE LANDESBK GIROZ NDB DE C- C- Aa3 Aa2 A A WESTLB AG WESTLB DE D- D- A1 A1 A- A- WGZ-BANK AG WESTDEUTSCHE GE WGZ DE C C A2 Aa3 -- A+ France BNP PARIBAS BNP FR B+ B Aa2 Aa1 AA AA CREDIT AGRICOLE SA ACAFP FR B+ B Aa2 Aa1 AA- AA SOCIETE GENERALE SOCGEN FR B+ B Aa2 Aa1 AA AA Source: Rating agencies; Bloomberg; Global Research (HVB)
Global Credit Research Financial Institutions May 29, 2007 Neither S&P nor Fitch intend to change their methodologies S&P's comment from February 27, 2007 Fitch published support rating floors for all banks it covers Support Rating Floor is the lowest IDR a bank could get based on the current level on assumed support Sector Report - Summary of Moody's JDA For Banks REACTIONS BY S&P AND FITCH One of the most frequently asked questions over recent weeks was related to the other agencies' reaction. Both S&P and Fitch, as we expected, have stated that the importance of support they factor in their ratings is not subject to change. Moreover, Fitch released a detailed list of support rating floors; at the same time, Fitch made clear that there was no change in criteria. The first paragraph of S&P's seven page comment reads like this: "Potential external support from the government or the private sector has long been a basic and positive element of Standard & Poor’s Ratings Services’ credit ratings on banks. Nonetheless, we do not believe it possible to rigorously quantify the probability that a government will support a private-sector bank and ensure timely repayment of all its unsecured debt obligations. Our credit ratings reflect fundamental analysis of institution-specific and environmental factors, including external support." Fitch, the only agency that provides Support Ratings (on a 1-5 scale), aims to increase transparency in its move to publish its support rating floors (without changing its criteria). Fitch said, "The Support Rating Floor is expressed on the traditional 'AAA' long-term scale. It clearly indicates the level below which Fitch would not lower its Issuer Default rating ("IDR") in absence of any changes to the assumptions underpinning the bank's Support rating. In addition to the 'AAA' scale, there will be one additional point on the scale - "No Floor" - which indicates that in Fitch's opinion, there is no reasonable likelihood of potential support being forthcoming. In practice, this approximates to a probability of support of less than 40%." The following pages are filled with Fitch's support rating floor list. IDR is the Issuer Default Rating (long-term rating), Support Rating ranges from 1 (high) to 5 (low), and Support Rating Floor is the lowest IDR a bank could be assigned based on the current level on assumed support. Bayerische Hypo- und Vereinsbank AG, CA IB International Markets AG, Bayerische Hypo- und Vereinsbank AG Milan Branch See last pages for disclaimer. 13
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