Download the updated rating report here.

KfW benefits from an explicit and direct statutory guarantee and an institutional liability (Anstaltslast) from the Federal Republic of Germany. These guarantees fully align the credit risk of the institution with that of the sovereign.

KfW is Germany’s national promotional bank, majority owned by the Federal Republic of Germany. According to its statutory mission, KfW supports the economic and policy objectives of the federal government, particularly focusing its promotional activity on the following areas: climate change and the environment, globalisation, digitalisation and innovation, and social change.

The ratings also reflect KfW’s specific funding model: KfW is almost entirely wholesale-funded as is not permitted to accept deposits. However, the institution has enjoyed continuous access to global capital markets, with a comparatively lower cost of funding and broad currency diversification.

KfW carries out its activities primarily by on-lending to banks, which results in a high and concentrated exposure to the financial sector. However, KfW has so far maintained a conservative risk profile and, despite being exempt from the direct application of banking supervision regulations, complies with significant parts of bank regulatory law, in particular capital and risk management requirements.

The following ratings were assigned to KfW, all with a Stable Outlook:

• Issuer rating, AAA
• Senior unsecured debt rating, AAA
• Short-term debt rating, S-1+

All ratings have a stable outlook.