The AAA rating with a Stable Outlook assigned to the Austrian mortgage covered bonds issued by Bausparkasse Wüstenrot AG are based on the bank's sound issuer quality, enhanced by cover pool support based uplift.

Cover pool support is the primary rating driver and benefits from a portfolio of granular domestic mortgage loans. Together with the programme’s governance support, it provides seven notches of uplift above our credit view of Bausparkasse Wüstenrot AG. Governance support reflects our assessment of the legal covered bond and resolution framework in Austria. Together, the programme benefits from a one-notch buffer against a deterioration of the bank’s quality.

This is not a rating action. On 4 March 2025, Scope affirmed the covered bonds at AAA/Stable. Click here for the corresponding press release.

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