Salzburg-based Bausparkasse Wüstenrot AG’s AAA covered bond ratings reflect a seven-notch rating uplift from the building society’s issuer rating. The primary rating driver is cover pool support resulting from a generous overcollateralisation of 123.5% as of 31 March 2020. Maturity mismatches drive the rating-supporting overcollateralisation level of 17.0%. The high credit quality of the domestic residential cover pool adds only incremental risk.

Fundamental credit factors provide a credit support of up to four notches shielding the ratings against a deterioration of the cover pools credit quality.

The covered bonds have been assigned their maximum achievable rating. Therefore, an issuer downgrade or negative change in Outlook would result in commensurate changes in the covered bond ratings.

This is not a rating action. On 14 July 2020, Scope affirmed the covered bonds at AAA/Stable. Click here for the corresponding press release.

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