The affirmation reflects the company’s ability to maintain adequate liquidity and execute a healthy development pipeline despite a transitional year in 2025 marked by limited EBITDA generation. The reliance on project completions remains a key constraint.

The EUR 302.9m underlying portfolio of solar and heat pump system loan receivables was originated to homeowners by Enpal B.V. and Enpal Heat GmbH.

The underlying portfolio of secured and unsecured NPL loans was originated by 23 Italian banks and is serviced by Master Gardant S.p.A. and Special Gardant S.p.A.

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.