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SFG’s Support Drives IDRs: Landesbank Hessen-Thueringen Girozentrale’s (Helaba) Issuer Default Ratings (IDRs) are aligned with the IDRs of Sparkassen-Finanzgruppe (Sparkassen) (SFG, A+/Stable/F1+), the German savings bank network. This reflects ���������ֳ�’ view that there is a very high probability that SFG, which owns 66% of Helaba, would provide timely support if needed, based on Helaba’s membership in SFG’s institutional protection scheme (IPS). The Stable Outlook on Helaba’s Long-Term IDR mirrors that on SFG. Helaba’s Viability Rating (VR) reflects the bank’s mainly wholesale-driven business model, large exposure to cyclical asset classes, which has recently resulted in a deterioration of its asset quality, and weaker profitability compared with international peers. This is mitigated by its adequate capitalisation and access to the savings banks’ excess liquidity. German Corporate Bank: Helaba focuses on corporate and asset-based lending, including commercial real estate (CRE) financing, and institutional clients. This is balanced by the bank’s close cooperation with the savings banks. Earnings in Helaba’s regional retail franchise, asset management, and rents from a portfolio of residential investment properties provide additional revenue diversification. Similar to German peers, intense competition in most of Helaba’s product areas limits pricing power and affects profitability. Significant Sector Concentrations: Helaba is largely exposed to cyclical asset classes, mainly CRE and export-oriented corporates. Underwriting standards and risk monitoring are broadly in line with market practice, but the bank’s exposure to CRE development, office properties and CRE in the US is higher than at its peers. Market risk is adequately hedged.