It is too early to judge if Germany’s Landesbanks have already been impacted by the loss, in July, of the Anstaltslast and Gewährträgerhaftung state guarantees that infuriated private banks by artificially protecting their triple-A ratings.
Their existing liabilities are grandfathered, and most have in any case extensively pre-funded themselves. As a result, they have yet to be exposed to the full glare of capital market scrutiny by issuing unsecured debt on the basis of standalone ratings.
But when they are, the general consensus among ratings agencies, credit analysts and even competitors is that Landesbank Baden-Württemberg (LBBW) will be the player best prepared to compete without the cocoon of its former state guarantees.
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