The rating is supported by the guarantee of the German Federal State of Baden-Württemberg (AAA/Stable) for L-Bank's existing and future obligations with respect to money borrowed, bonds issued, and derivative transactions entered into by the bank.

The extensive guarantee framework of the Free State of Bavaria (AAA/Stable) for LfA’s obligations and the bank’s high strategic importance to the federal state underpin the rating.

The affirmation is driven by the stable operating profitability and good credit metrics, while the more challenging domestic market conditions underscore the inherent risks associated with the company's limited size and scope.

This publication does not constitute a rating action.

This publication does not constitute a rating action.

This publication does not constitute a rating action.

The underlying portfolio is composed of secured and unsecured Italian NPL loans originated by Banco BPM S.p.A. and serviced by Gardant Liberty Servicing S.p.A.

This publication does not constitute a rating action.

The Outlook revision is mainly supported by the company’s recent successful GEL 60m bond issuance that has significantly reduced refinancing risks.

The rating is supported by BNP Paribas’s very resilient business model, supportive profitability and asset quality, and adequate buffers to prudential requirements based on the lighter risk intensity of the balance sheet.