For further DG HYP-News please click here:

News- Archive



S&P affirmed its ratings on the German cooperative banking sector and on DG HYP

Outlook remains stabile

Outlooks remain stabile S&P Global Ratings affirmed its 'AA-/A-1+' long- and short-term issuer credit ratings on the core group member banks of the cooperative banking sector in Germany ("genossenschaftliche FinanzGruppe"). The outlook is stable. In this context S&P also affirmed its 'A+' long-term and 'A-1' short-term counterparty credit ratings on Germany-based commercial real estate (CRE) lender Deutsche Genossenschafts-Hypothekenbank AG (DG HYP). As a part of the Volksbanken Raiffeisenbanken cooperative financial network the outlook remains stable.

The affirmations are also based on S&P‘s unchanged assessment of group members' strategic importance and the effectiveness of the sector's protection scheme. The level of integration and strategic coordination within the sector, governed by the National Association of German Cooperative Banks (Bundesverband der Deutschen Volksbanken und Raiffeisenbanken e.V.), remain high.

S&P anticipates that the sector will partly offset margin pressure by continued cross-selling, pricing initiatives, and cost-efficiency measures. This also includes anticipated synergies from 2018 resulting from the recent merger of the sector's formerly two central banks into a single entity, DZ BANK. As a result, S&P projects that the group will increase its risk-adjusted capital (RAC) ratio to between 12.5% and 13.5% over the next 12-18 months.