Scope Ratings reviews its ratings either yearly, or every six months in the case of sovereigns, sub-sovereigns and supranational organisations. Monitoring reviews are unrelated to the calendar that outlines public finance rating actions.

Scope performs monitoring reviews to determine whether outstanding ratings remains proportionate. Monitoring reviews are conducted either by performing a portfolio review in terms of the applicable methodology, latest developments, and the rated entity’s financial and operational aspects relative to similarly rated peers; or through targeted reviews on an individual credit. Scope publicly announces the completion of each monitoring review on its website.

Scope completed the monitoring review for KfW, rated AAA with a Stable Outlook, on 2 July 2021. This monitoring note does not constitute a rating action nor does it indicate the likelihood of a credit rating action in the short term. The latest information on the credit ratings in this monitoring note along with the associated rating history can be found on www.scoperatings.com.

Key rating factors

KfW’s current and future obligations carry an explicit and unconditional guarantee by the Federal Republic of Germany, thus providing creditors with direct recourse in case the agency cannot meet its obligations on a timely basis. In addition, KfW benefits from a maintenance obligation by the Federal Republic under the principle of Anstaltslast. Chartered under public law (AöR), KfW cannot be subject to insolvency proceedings and is exempt from the EU’s BRRD. Given KfW’s high strategic importance and clearly defined public mission, Scope believes that the Federal Republic as 80% owner will provide extraordinary support to KfW should it be required.

The methodology applicable for the reviewed rating and rating Outlook (Rating Methodology: Government Related Entities, 5 May 2021) is available on https://www.scoperatings.com/#!methodology/list.
This monitoring note is issued by Scope Ratings GmbH, Lennéstraße 5, D-10785 Berlin, Tel +49 30 27891-0.
Lead analyst Christian van Beek, Director.

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