Even Landesbanks Get the Blues

In a report dated May 6, 2009, Standard & Poor’s (“S&P”) took a hard look at the six rated German Landesbanks in light of a deteriorating economic outlook and the impact that it will have both on asset quality and short to medium term business prospects, as well as the challenges these banks face to their funding capacity and capital requirements in a fundamentally changing banking environment. Their conclusions led to the downgrading of five institutions by one notch and revising the outlook on the other, Heleba, to negative (see table).

While S&P continues to believe there

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