Moody´s changes outlook on KfW´s issuer rating to “stable” from “negative”; rating affirmed at “Aaa”

On 7 March 2014, Moody´s has changed the outlook on KfW´s issuer rating to “stable” from “negative” and has affirmed its Aaa-rating. With this rating action, KfW holds the top ratings triple-A at the rating agencies Moody’s, Standard & Poor’s and Fitch Ratings, each with a stable outlook as of now.

Today’s rating action is based on the change in the outlook of the Federal Republic of Germany, which on 28 February 2014 Moody´s changed to “stable” from “negative”. Key drivers of this rating action were diminished risks within the euro area as well as diminished risks from the German banking system and progress with respect to fiscal consolidation in Germany itself.

In July 2012, Moody’s for the first time had changed the outlook on Germany’s and KfW’s rating to “negative” by keeping their long-term rating each at “Aaa”. The short-term rating was not affected, it remains at Moody’s without any change at its top rating “P-1”.

KfW’s rating is mainly based on the rating on Germany due to KfW’s tight relationship with the Federal Government and Germany’s direct and explicit guarantee for bonds issued by KfW (§1a KfW Law). Beside this, rating agencies always highlight, among others, the high quality of KfW’s assets, its strong capital adequacy, KfW’s stable and low-risk business model and its excellent access to the capital markets and, therefore, to liquidity.

For more details to KfW’s ratings see www.kfw.de/KfW-Group/Investor-Relations/Rating