Sector Report - UniCredit Research

Transcription

March 2015
European
Agencies &
Supras
Economics & FI/FX Research
Credit Research
Equity Research
Cross Asset Research
“
”
Everything you need to know
032015
<date>
March 2015
Credit Research
Sector Report SSA
Contents
3
European supranationals
7
Non-European supranationals
10
European agencies
22
Agencies managing strategic petroleum reserves
24
French EPIC/EPA
29
Agencies – explicit vs. implicit support
Cover picture © Petrus Bodenstaff - Fotolia.com
Valentina Stadler (UniCredit Bank)
+49 89 378-16296
[email protected]
UniCredit Research
page 2
Robert Vielhaber (UniCredit Bank)
+49 89 378-12004
[email protected]
See last pages for disclaimer.
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March 2015
Credit Research
Sector Report SSA
European supranationals
Supranationals – similar
structures, different missions
Supranationals per se are agencies, except that in terms of ownership and mission they have
been extended from one national identity to several nations. "Supranational" essentially means
"above nations, above national level". The creditworthiness of supranational institutions,
European or otherwise, is underpinned by three factors: a) they normally benefit from
preferred creditor status, an implicit agreement between borrower and lender that such an
institution will enjoy priority over other creditors; b) the quality of their shareholders and their
proven commitment of support, although in most cases no direct guarantees are given; and
c) the regulatory environment, which ensures financial stability and/or supportive mechanisms
for their debt obligations. Supranationals include multilateral development banks (like EIB, CEB)
as well as international institutions (EU, EFSF, ESM).
SUPRANATIONALS – EUROPE
Issuer/Entity
Credit Ratings
Basel II –
Stand. App.
Ticker/
iBoxx
Council of Europe
Development Bank
Aa1s/AA+s/AA+s
0%
COE
Y
Profile
Overview: The Council of Europe Development Bank, established in 1956 by the
Council of Europe, provides loans to member countries for social purposes
including job creation for SMEs, vocational training, social housing, health care,
environmental projects, natural catastrophes, educational reform, the integration of
refugees, and help for disadvantaged regions. Since the late-1990s, the Council of
Europe Development Bank’s lending operations have been rebalanced towards
CEE (21 shareholders are CEE countries). Lending to CEE currently accounts for
about 50% of total lending. Total assets: EUR 25.3bn (1H14 company data).
Ownership: 41 European countries (members of the Council of Europe).
Support: Strong commitment and membership support; the CEB's capital quality
(11.2% of subscribed capital is actually paid-in) remains excellent, with investmentgrade members accounting for more than 90% of callable capital as of June 2014.
Frequent capital increases have resulted in total subscribed capital of EUR 5.5bn.
Strengths (Moody's): An exceptionally strong liquidity profile; strong asset quality
supported by its prudent risk-management framework and preferred creditor status.
Challenges (Moody's): A high amount of leverage (debt to equity ratio) relative to
other higher-rated multilateral development banks; managing the shift of its
balance sheet towards the economically weaker member countries without
negatively impacting its risk-bearing capacity.
Outstanding bonds (Bloomberg): EUR 20.6bn
Eurasian Development Bank A3s/BBBn/--
0%
EURDEV
N
Overview: EDB, established in 2006, is a sub-regional development bank
servicing an increasing number of countries in the Eurasian Economic Community.
The strategic objective of this multilateral development finance institution is the
promotion of integration between its members by providing long-term financing to
both the private and the public sectors. Total assets: USD 4.3bn (1H14 company data).
Ownership: Russia, Kazakhstan, Tajikistan, Armenia, Belarus and Kyrgyzstan.
Support: Strong member support, especially from the two founding and majority
members, Russia and Kazakhstan (owning just under two thirds and under one
third of share capital, respectively) and comfort letters signed by Russia and
Kazakhstan exist.
Strengths (Moody's): Very strong asset coverage by paid-in capital; very low
leverage; very high coverage of debt service by liquid assets; very high callable
capital relative to outstanding debt.
Challenges (Moody's): Increasing non-performing loans with seasoning of loan
portfolio; increasing risks to operating environment due to Russia-Ukraine crisis;
high portfolio concentration and high concentration of members and assets; strong
economic links between members.
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Issuer/Entity
Credit Ratings
Basel II –
Ticker/
Stand. App. iBoxx
European Atomic Energy
Community
Aaas/AA+s/AAAs
0%
EURAT
N
Profile
Overview: EURATOM was established as a supranational entity in 1957 by the
Treaty of Rome, which also created the EU. Its purpose is to help create the
conditions necessary for the establishment and growth of peaceful nuclear
industries within EU member states. It also extends financing in certain central and
eastern European countries to improve the safety and efficiency of nuclear power
stations. EURATOM is a legally autonomous entity and has a common budget with
the European Commission which, by law, is required to be balanced.
Ownership: EU member states.
Support: Strong member support; the common budget with the EU Commission
acts as a safety net in the unlikely event of EURATOM being unable to meet any of
its debt obligations since, should such a situaion arise, EURATOM can draw funds
directly from member states through the budget mechanism until all obligations are met.
Strengths (Moody's): The joint and several liability of the 28 EU member states
with regard to their obligations to the EU; multiple layers of protection in case the
EU's borrowers face difficulties repaying their loans; high creditworthiness and firm
commitment of the 28 EU member states.
Challenges (Moody's): Potential deterioration in the creditworthiness of the EU
member states; potential weakening of the member states' commitment to the EU.
European Bank for
Reconstruction &
Development
Aaas/AAAs/AAAs
0%
EBRD
N
Overview: EBRD, established in 1991, has a mandate to help countries in central
and eastern Europe and the Commonwealth of Independent States with their
transition to market economies. It does so by lending mainly to the private sector, by
equity investments, and via the provision of guarantees. Total assets: EUR 49.0bn
(2013 company data).
Ownership: 64 countries plus the European Union and the European Investment Bank;
EU member states, the EU, and the EIB together hold 66% of share capital.
Support: Strong member support; high-quality callable capital
Strengths (Moody's): Robust capital buffers and modest gearing; strong riskmanagement framework; ample liquidity; strong shareholder support.
Challenges (Moody's): Loan and share portfolio concentration in countries with
challenging macroeconomic environments; potential for asset-quality deterioration
should the economic outlook worsen and affect several large borrowers.
European Coal & Steel
Community
Aaas/AAAs/--
20%
ECS
N
Overview: ECS was set up in 1951 to support the development of the common market
for coal and steel throughout Europe. The treaty expired on 23 July 2002; lending and
borrowing operations were terminated in 1997. The European Union is responsible for
managing the assets of ECS’s assets and for winding up its financial affairs.
Ownership: EU member states.
Support: No formal guarantee from member states, but the ECS treaty requires the
member states to take measures to ensure that all financial obligations are fully met.
ECS's assets cover its outstanding liabilities.
with regard to their obligations to the EU; multiple layers of protection in case EU
borrowers face difficulties repaying their loans; high creditworthiness and firm
EUROFIMA – European
Company for the Financing
of Railroad Rolling Stock
Aa1s/AA+s/--
20%
EUROF
Y
Overview: EUROFIMA, which was established in 1956, is a joint-stock company that
finances rolling stock under equipment financing contracts for railways of its
members. Contracts are collateralized by the rolling stock financed and the direct
government guarantee from the member countries. Total assets: CHF 27.6bn (2013
company data).
Ownership: National railways of 27 continental European countries.
Support: Member states must either be directly liable or guarantee the obligations
of their national railways under the financing contracts. If the defaulting railway's
member state does not honor these obligations, a shareholders' guarantee ensures
that all sovereign signatories must cover them if obligations exceed EUROFIMA's
guarantee reserve. Proportionate liabilities are capped at the value of shareholdings.
Strengths (Moody's): Very high asset quality and preferred creditor status; ongoing
implementation and adaptation of a strong risk management framework.
Challenges (Moody's): High leverage; low callable capital relative to its debt obligations.
UniCredit Research
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March 2015
Credit Research
Sector Report SSA
Issuer/Entity
Credit Ratings
Basel II –
Stand. App.
Ticker/
iBoxx
European Financial
Stability Facility (EFSF)
Aa1s/AAn/AAs
0%
EFSF
Y
Profile
Overview: The EFSF was created in June 2010 as part of a stabilization package
agreed on by eurozone member states. The EFSF's mandate is to ensure financial
stability by issuing bonds in the capital markets and using the proceeds to assist
eurozone members, if necessary. It is a limited liability company incorporated under
Luxembourg law. The debt securities issued by the EFSF are backed by a pool of
sovereign guarantees from the member states. The EFSF adjusted the maximum
guarantee commitments to EUR 725bn, following the exit of Portugal, Greece,
Ireland and Cyprus. First committments were EUR 440bn in the original EFSF
(EFSF 1.0), and subsequently EUR 780bn under the amended framework
agreement (EFSF 2.0) in 2011. The EFSF was created as a temporary institution. It
has been followed by a permanent crisis mechanism, the European Stability
Mechanism (ESM) as of 8 October 2012. Recently, the EFSF extended its
assistance program for Greece to end-February 2015. The EFSF receives loan
repayments from beneficiary countries.
Ownership: Eurozone member states. The largest shareholders are Germany
(29.1%), France (21.9%) and Spain (12.8%).
Support: Irrevocable and unconditional guarantees from the member states
according to the percentage each has to contribute (“contribution keys”); very strong
political support.
Strengths (Moody's): Irrevocable and unconditional guarantees by the participating
member states on borrowings by EFSF; strong commitment and support from the
EFSF member states and high creditworthiness of EFSF's guarantors.
Challenges (Moody's): High default correlation between euro area member states;
high concentration risk in its loan book.
European Investment Bank
Aaas/AAAs/AAAs
0%
EIB
Y
Overview: EIB was established by the Treaty of Rome (1958) and serves as the
EU's development bank, aiming to promote the EU's policy objectives via the
financing of viable investment projects. It is legally autonomous from other EU
entities and has sole legal responsibility for its own debt. With a view to increased
lending, in December 2012 the EIB received a capital increase of EUR 10bn, which
is fully paid-in. As a consequence, total subscribed capital increased to
EUR 243.3bn and paid-in capital from EUR 11.6bn to EUR 21.6bn. Thus, the ratio of
paid-in to total capital amounts to 8.9% of total capital. Total assets: EUR 508.1bn
Ownership: 28 EU member states.
Support: Strong member support; preferred creditor status; under its statute, the
bank is allowed to have maximum loans outstanding equivalent to 250% of its
subscribed capital.
Strengths (Moody's): Very high asset quality; access to ECB liquidity; strong
shareholder support.
Challenges (Moody's): High correlation among member states; high correlation of
members and assets.
European Stability
Mechanism
Aa1s/--/AAAs
0%
ESM
Y
Overview: The ESM is a multilateral lending institution aimed at providing
emergency financial assistance to Euro Area Member States (EAMS) in financial
distress. The ESM is the permanent successor of the European Financial Stability
Facility (EFSF), and a legally incorporated entity in Luxembourg. Financial
assistance comprises loans, credit lines, loans for the purpose of recapitalization of
financial institutions, and sovereign securities purchased either in the primary or
secondary market. Total subscribed capital amounts to EUR 704.8bn, of which EUR
80.5bn is paid-in. Subscribed capital increased slightly following the accession of
Latvia in March 2014. The ratio of paid-in capital to total capital at 11.4% is very high
relative to other multilateral lending institutions.
Ownership: 19 eurozone member states.
Support: The ESM benefits from very strong political commitment and preferred
creditor status. The issuer has unique capital call mechanisms. These include
emergency capital calls, where the ESM's managing director can make a capital call
to ESM shareholders directly to ensure timely payment. Moreover, should any ESM
member fail to meet required capital calls (emergency or not), other members would
have to temporarily step in to provide the missing capital.
Strengths (Moody's): Low leverage with a lending capacity of EUR 500bn and
subscribed capital of EUR 702bn; strong commitment and support from the ESM
member states and high median creditworthiness of ESM's shareholders; prudent
capital management policy; preferred creditor status, junior only to the IMF.
Challenges (Moody's): High default correlation between euro area member states;
high concentration in its loan book.
UniCredit Research
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Credit Research
Sector Report SSA
Issuer/Entity
Credit Ratings
Basel II –
Stand. App.
Ticker/
iBoxx
European Union
Aaas/AA+s/AAAs
0%
EU
Y
Profile
Overview: The mandate of the EU, which was established in 1958 by the Treaty of Rome,
has been to foster economic and social integration through the development of a common
market and coordinated policies. Total budget: EUR 161.8bn (2015 EU forecast).
Ownership: 28 EU member states.
Support: Debt service benefits from: 1. The fact that the EU services its debt with
its borrowers' loan repayments; 2. debt-service payments can be made from all EU
budget revenues; 3. the EU has recourse to guarantees from member states, public
institutions, banks, and other entities; and 4. if budget revenues are insufficient,
member states are legally obliged to balance the EC budget and thereby to cover
any shortfall. In the event that one or more member states do not meet their legal
obligations, the difference would be divided among the remaining member states in
proportion to the estimated budget revenue from each of them.
with regard to their obligations to the EU; multiple layers of protection in case the
EU's borrowers face difficulties repaying their loans; high creditworthiness and firm
Nordic Investment Bank
Aaas/AAAs/--
0%
NIB
N
Overview: NIB was established as the Nordic countries' joint international financial
institution in 1975. The primary purpose of NIB is to promote sustainable growth in
the economies of member countries through medium and long-term financing for
private and public projects. The bank also finances projects in emerging markets
that are of mutual interest to member and borrowing countries. Total assets: EUR 23.5bn
Ownership: Denmark, Finland, Iceland, Norway, Sweden and, since 2005, Lithuania,
Latvia and Estonia.
Support: NIB's capital position is very strong, with more than 96% of capital held by
AAA/AA+ rated sovereigns, which is well above that of all of NIB's multilateral peers.
The bank’s lending ceiling corresponds to 250% of the subscribed capital and
accumulated general reserves.
Strengths (Moody's): Healthy liquidity and capital adequacy; impeccable asset quality;
prudent financial and risk management; member support from Aaa-rated shareholders,
which hold 95% of the bank's subscribed capital; preferred creditor status.
Challenges (Moody's): Maintaining the quality of the loan portfolio and minimizing
credit risk with a portfolio that contains a significant proportion of first-time
borrowers; fulfilling its mandate to finance projects related especially to
environmental and renewable energy in a competitive credit environment.
Current Ratings: Moody’s/S&P/Fitch; Outlooks: s=stable; p=positive; n=negative; wp= watch positive; wn=watch negative; wd=watch developing
Included in iBoxx Sub-Sovereigns: Y=Yes; N=No
Source: rating agencies, Bloomberg, UniCredit Research
UniCredit Research
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Non-European supranationals
Non-European Supranationals
also issue EUR benchmark bonds
In order to complete our overview of all supranationals and hence provide a better comparison, we
list non-European supranationals in the table below. Moreover, some of these non-European
supranationals such as IBRD, IADB and ASDB have issued benchmark bonds denominated
in EUR in the past. Their creditworthiness, like their European-based counterparts, is
underpinned by the same factors, mainly preferred creditor status, and the quality and
commitment of shareholders. In contrast to European-based supranationals, the
non-European ones tend to be multilateral development finance institutions (MDFIs) providing
financing to their associated areas and regions.
SUPRANATIONALS – NON-EUROPEAN
Issuer/Entity
Credit Ratings
Basel II –
Ticker/
Stand. App. iBoxx
African Development Bank
Aaas/AAAs/AAAs
0%
AFDB
N
Profile
Overview: AFDB is an multilateral development finance institution established in 1964,
whose mandate is to contribute to the economic development and social progress of its 54
regional members and to reduce their poverty level. AFDB primarily lends to the public
sector for long-term projects and to sub-regional and national development banks to
finance investment programs. Total assets: USD 32.3bn (2013 company data)
Ownership: 54 African and 27 non-African countries.
Support: Strong member support including several AAA rated countries. Preferred
creditor status. Since 1995, AFDB has restricted its sovereign lending to its most
creditworthy regional member countries.
Strengths (Moody's): Robust capitalization; strong liquidity position; proven support
from a large and diversified group of shareholders; preferred creditor status.
Challenges (Moody's): A non-performing loan ratio of around 3% that is relatively
high for a Aaa rated multilateral development bank; a challenging operating
environment, both politically and economically; concentration risk in North Africa.
Asian Development Bank
Aaas/AAAs/AAAs
0%
ASIA
Y
Overview: ASDB was established in 1966 as an multilateral development finance
institution whose mission is to promote the economic and social development of its
members and to encourage public as well as private-sector investment for
development purposes, especially for smaller and less-developed countries. Its aim is
to reduce poverty and improve the quality of life. ASDB is the third-largest multilateral
development bank. Total assets: USD 115.8bn (2013 company data).
Ownership: 67 countries, of which 48 are located in Asia-Pacific. Japan (15.7%) and
the US (15.6%), are the largest shareholders, followed by China (6.5%), India (6.4%)
and Australia (5.8%).
Support: Strong shareholder support. Implicit preferred creditor status. Lending and
investments are restricted to 100% of capital and reserves.
Strengths (Moody's): Strong capital base and financial fundamentals; solid
shareholder support; preferred creditor status.
Challenges (Moody's): Remaining strategically relevant in a dynamically evolving
region; maintaining asset quality in the event that several large borrowers face financial
crises simultaneously.
Caribbean
Development Bank
Aa1s/AAs/--
0%
CARDEV
N
Overview: CDB, established in 1969, is a sub-regional MDFI whose purpose is to
contribute to the economic growth of its Caribbean member countries and foster their
economic cooperation and integration. Total assets: USD 1.5bn (2013 company data).
Ownership: 22 regional countries and five non-regional countries (Canada, the UK,
Italy, Germany, China).
Support: Strong shareholder support. More than 95% of loans are to members or
guaranteed by them. Strong support is reflected in a a relatively high share of paid-in
capital. Since its creation, subsribce capital has increased by 150%.
Strengths (Moody's): Solid capital adequacy indicators; strong financial support from
borrowing and non-borrowing member countries; robust liquidity and moderate
leverage; history of timely loan repayment despite members' multiple debt
restructurings; limited private sector exposure.
Challenges (Moody's): High concentration of loans among a limited number of
borrowers; average borrower credit quality weak and deteriorating; relatively high
vulnerability to external shocks from borrowing-member countries.
UniCredit Research
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Issuer/Entity
Credit Ratings
Basel II –
Ticker/
Stand. App. iBoxx
Corporación Andina
de Fomento
Aa3s/AA-n/AA-s
20%
CAF
N
Profile
Overview: CAF, established in 1968, is an MDFI that supports the economic
development of its members. It grants loans for capital projects, export and import
financing, and working capital. Total assets: USD 29.4bn (3Q14 company data).
Ownership: The bank has 10 core members and 9 additional associated members.
Support: Track record of capital increases and preferred creditor treatment. At yearend 2013, CAF had authorized capital of USD 10bn, while paid-in capital was USD 4.0bn.
Strengths (Moody's): Strong willingness of members to provide financial support;
prudent financial management reflected in highly diversified funding sources; improving
average credit quality of an increasingly diversified member base and loan portfolio;
record of strong asset performance reflecting preferred-creditor status.
Challenges (Moody's): Significant credit exposure to B-rated countries; very limited
presence of highly-rated shareholders and low levels of callable capital; comparably
heavy dependence on short-term funding and weak liquidity ratios; relatively weak
financial policies.
Inter-American
Development Bank
Aaas/AAAs/AAAs
0%
IADB
N
Overview: IADB is the oldest and second-largest MDFI. It was established in 1959 to
help accelerate economic and social development in Latin America and the Caribbean.
Its lending operations support the agricultural, energy and transportation industries and
also focus on poverty reduction and social equity, modernization and integration, and
the environment. Total assets: USD 97.0bn (2013 company data).
Ownership: 48 countries including 26 Latin American and Caribbean countries, the
US (with a 30% voting share), Japan (5%), Canada (4%); and 20 non-regional countries.
China was the latest country to join, in January 2009.
Support: Strong member support. Preferred creditor treatment. Capital was increased
by USD 70bn, but only USD 1.7bn is to be paid-in (July 2012).
Strengths (Moody's): Solid capital base; strong commitment from non-borrowing
shareholders; sound financial management; preferred creditor status.
Challenges (Moody's): Credit concentration in high-risk countries with volatile
macroeconomic environments; balancing a development mandate with sound financial
practices and reasonable profitability.
Inter-American
Investment Corp
Aa2s/AAs/AAAs
20%
IICORG
N
Overview: IAINCO, created in 1989, complements the IADB by supporting small and
medium-sized private-sector companies; it provides equity and medium and long-term
loans without government guarantees, it mobilizes funding from other lenders, and
provides advisory services. Total assets: USD 1.6bn (3Q13 company data).
Ownership: 45 member countries: same as the IADB except for the UK, Croatia, and
Slovakia. The US is the largest shareholder, contributing 23% of total subscribed
capital. Argentina and Brazil rank second with 11% of total subscribed capital each.
Support: Strong member support and capitalization. Preferred creditor treatment.
Beyond this, support is expected from its larger sister institution, the Inter-American
Development Bank.
Strengths (Moody's): Strong capitalization and adequate financial management;
strong asset performance despite the private sector focus; close funding relationship
with the Inter-American Development Bank.
Challenges (Moody's): Lending without sovereign guarantees to riskier segments of
the private sector; moderate concentration risks stemming from the portfolio.
International Bank for
Aaas/AAAs/AAAs
Reconstruction and
Development (World Bank)
0%
IBRD
Y
Overview: The World Bank, established in 1946, is an MDFI whose main goals are to
promote economic development and reduce global poverty. The International Bank for
Reconstruction and Development (IBRD) is a cornerstone and also finances programs
for economic reform in developing member countries. It provides medium and longterm financing to governments and other entities (only those entities with a sovereign
guarantee in place). It is the largest and oldest MDFI. The IBRD is also often referred
to as the World Bank. Total assets: USD 324.4bn (2013 Moody’s).
Ownership: 188 member countries. The largest shareholder is the US, with 15.0% of
subscribed shares.
Support: Very strong member support.
Strengths (Moody's): Sound financial policies; preferred creditor status, aiding asset
quality; strong shareholder support.
Challenges (Moody's): Asset quality deterioration in case of simultaneous financial
crises of several large borrowers.
UniCredit Research
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Issuer/Entity
Credit Ratings
Basel II –
Ticker/
Stand. App. iBoxx
International
Finance Corporation
Aaas/AAAs/--
0%
IFC
N
Profile
Overview: IFC, an MDFI and a member of the World Bank Group, provides investment
services to foster sustainable economic growth in developing countries by financing
private-sector investment (without government guarantees), mobilizing capital in the
international financial markets, and providing advisory services to businesses and
governments. Since none of IFC’s loans are government guaranteed, there is far more
risk embedded in its development-related portfolio than in those of most MDFIs.
However, IFC has historically maintained reserves for loan losses well in excess of its
nonaccrual loans. Total assets: USD 84.1bn (1H14 company data).
Ownership: 184 member countries: the five largest shareholders are the US, Japan,
Germany, France, and the UK.
Support: Preferred creditor treatment. Strong shareholder support as part of the World
Bank Group.
Strengths (Moody's): Robust capital base; very high liquidity; solid asset quality,
reinforced by preferred creditor status; strong shareholder support.
Challenges (Moody's): Potential emerging market debt problems, as exemplified by
the Argentine crisis. If generalized, this could seriously affect asset quality.
International Finance
Facility for Immunisation
Aa1s/AAn/AAs
0%
IFFIM
N
Overview: The IFFIM is a UK-registered charity that was established in June 2006 and
has its roots in the Millennium Development Goals. The sole purpose of the IFFIM is to
raise funds to step up health and immunization efforts in 70 of the world's poorest
countries. The financial basis for IFFIM is legally binding grant obligations from its
sovereign supporters and private foundations. These grant payments will continue until
2029. Total assets: USD 3.5bn (2013 company data).
Donor countries: UK, France, Italy, Norway, Australia, Spain, the Netherlands,
Sweden and South Africa.
Support: Support from highly-rated grantors.
Strengths (Moody's): Strong commitment from donor governments to support
programs financed by the IFFIM, reinforced by legally binding grant agreements;
gearing ratio and liquidity policies that provide a financial cushion against adverse
developments in the full and timely receipt of donor's scheduled payments; financial
and risk management by the World Bank.
Challenges (Moody's): Concentration of donor pledges; high correlation in credit risk
among euro area donors; the possibility of a large number of recipient countries going
into arrears with the IMF, causing material reductions in donor payments via the highlevel financing condition.
Islamic Development Bank
Aaas/AAAs/AAAs
0%
ISDB
N
Overview: The ISDB’s mandate is to foster the economic development and social
progress of its member countries and Muslim communities in non-member countries.
The ISDB was established in 1973. The ISDB is unique among MDFIs as it must
operate in accordance with the principles of Islamic law, or Sharia. It fulfils its role
mainly through asset-backed methods of financing such as leasing, installment sales,
interest-free loans and equity investments. Most of the development-related exposure
is in unrated or non-investment-grade countries.
Ownership: 56 Islamic countries with the main shareholder being Saudi Arabia (23.5%).
Support: ISDB benefits from shareholder support and tested preferred creditor status.
Virtually all of the ISDB's operational assets (equivalent to development loans for other
MDBs) benefit from sovereign, government-owned bank or highly rated commercial
bank guarantees.
Strengths (Moody's): Strong shareholder support; preferred creditor status; ample
and expanding capital base; high level of liquidity, low leverage.
Challenges (Moody's): Lack of Aaa rated member countries; risky operating
environment, similar to other multilateral development banks.
Current Ratings: Moody’s/S&P/Fitch; Outlook: s=stable; p=positive; n=negative; wp=watch positive; wn=watch negative; wd=watch developing.
Included in iBoxx Sub-Sovereigns: Y=Yes; N=No.
UniCredit Research
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Sector Report SSA
European agencies
A plethora of missions and
support mechanisms
In contrast to supranationals, European agencies come in all shapes and sizes, providing a
plethora of services underpinned by various support mechanisms. Some are supported by
legal concepts such as the German maintenance obligation (“Anstaltslast”) or guarantee
obligation (“Gewährträgerhaftung”), the Austrian “Ausfallbürgschaft”, or the French “Etablissement
Public Industriel et Commercial” and “Etablissement Public à caractère administratif”, while
others have direct state guarantees. The only common feature is that they serve national or
regional economic policies.
AGENCIES – EUROPEAN
Issuer/Entity
Credit Ratings
Basel II –
Ticker/
Stand. App. iBoxx
Aaas/AA+s/--
0%
Profile
Austria
Autobahnen- und
Schnellstrassen
Finanzierungs AG
ASFING
Y
Overview: ASFINAG is a wholly-owned government agency that plans, finances,
builds and maintains the Austrian motorway and high-speed road network. It has the
right to use the roads ("usus fructus rights") but does not own them, as the motorway
network remains the property of the Republic of Austria. The government exercises
operational, management, and financial control over ASFINAG, and approves the
company's budget. There are currently no privatization plans. Total assets:
EUR 14.8bn (2013 company data).
Ownership: Wholly-owned by the Republic of Austria.
Support: Strong explicit and implicit support. EUR 12bn EMTN program has a full
explicit, direct, unconditional, and irrevocable government guarantee (Austrian Budget
Law and Railway Act). Furthermore, under the ASFINAG law, the Ministry of
Transport is responsible for ensuring that ASFINAG has sufficient funds at all times to
protect its liquidity and equity.
Strengths (Moody's): Guarantee from the Republic of Austria for the rated debt; full
ownership by the Austrian state; role as implementer of the government's trunk road
network plans; representation of central government on ASFINAG's supervisory
board, with the budget controlled by the Ministry of Transport.
Challenges (Moody's): Relatively high leverage; central government decisions
influence both the revenue (via tolls) and the expenditure side (investments).
Bundesimmobiliengesellschaft mbH (BIG)
Aaas/--/--
20%
BUNIMM
N
Overview: BIG centralizes property management for Austria’s public sector, with a
view to improving efficiency and, more specifically, the cost-efficiency of various
government departments. BIG was created by law in 1992. It has responsibility for
managing the Austrian Republic’s real estate, with a EUR 10.5bn portfolio of schools
and universities (63%) and other federal tenants such as prisons, police stations and
courthouses, as well as offices and private flats (37%) as of 2015. BIG activities
involve renting out buildings to various government entities, carrying out renovations
and new investments, and handling sales of redundant buildings and land. BIG also
offers facilities management services if required by the tenants. Total assets: EUR
11.5bn (1H14 company data).
Ownership: Wholly-owned by the Republic of Austria.
Support: Strong owner support as the company is of strategic importance. BIG debt
counts as part of Austrian sovereign debt, although it does not benefit from a
sovereign guarantee.
Strengths (Moody's): Fully owned by the state and expected to continue having
strategic importance; business model is strongly linked to government-related
revenues; strong state oversight and commitment to ensuring financial viability.
Challenges (Moody's): Relatively high debt levels; somewhat inflexible rent
adjustment factors and rigid cost structure; the possibility for a majority of the tenants
to terminate the rental agreement with a year's notice.
Erdöl-Lagergesellschaft
m.b.H.
UniCredit Research
--/AA+s/--
20%
ERDLAG
Please refer to the section ‘Agencies managing strategic petroleum reserves’
N
page 10
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Issuer/Entity
Credit Ratings
Basel II –
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OeBB-Infrastruktur AG
Aaas/AA+s/--
0%
OBND
Y
Profile
Overview: OBND was created in January 2005 via the merger of three former
state-owned Austrian companies that operated in the railway infrastructure sector.
The new company is responsible for planning, constructing, maintaining, and
financing the entire Austrian railway network. Total assets: EUR 24.6bn (2013,
company data).
Ownership: Wholly-owned by the Republic of Austria via OeBB-Holding AG.
Support: Strong explicit and implicit government support. The EUR 20bn EMTN
program benefits from a full, explicit, direct, unconditional, and irrevocable
government guarantee. Furthermore, Austria is responsible for ensuring that OBND
maintains sufficient funds at all times to protect its liquidity and equity and to pursue
certain activities as agreed upon between the company and the government. This can
be achieved directly through funding from the Federal Financing Agency or through
the transfer of government funds.
Strengths (S&P): Critical role for the Austrian government as sole owner and
operator of all railway infrastructures; almost certain likelihood of extraordinary
government support; strong explicit government support through timely, unconditional,
and irrevocable guarantees; strategic importance as a railway constructor; consensus
among political parties protecting the company from privatization (privatization
requires consensus).
Challenges (S&P): Heavy dependence on sovereign support, including yearly
contributions to maintenance and construction; increasing debt.
Oesterreichische
Kontrollbank
Aaas/AA+s/--
0%
OKB
Y
Overview: OKB is Austria's main financial and information service provider for the
export industry and capital markets. As Austria's Export Credit Agency, OKB offers
customized instruments in the area of risk management for a variety of exports. It also
acts as principal paying agent for bond issues and administers the government’s bond
auctions acting as its agent, handles the clearing and settlement of stock exchange
transactions, and acts as a central depository for securities in Austria. Total assets:
Ownership: OKB is owned by a number of Austrian Banks including UniCredit Bank
Austria, Erste Bank, RZB and others.
Support: Strong explicit and implicit support from the Austrian government.
Unconditional, timely, and irrevocable guarantee for debt obligations issued under the
Export Financing Guarantees Act.
Strengths (S&P): Almost certain likelihood of extraordinary support from the Republic
of Austria, based on critical role for and integral link to Austria; irrevocable,
unconditional, and timely guarantees by Austria on practically all debt obligations;
extremely low-risk loan portfolio, almost entirely comprising fully secured loans.
Challenges (S&P): Almost exclusive focus on low-margin businesses, which
additionally exposes the bank to the business cycle in the Austrian export sector; no
state ownership.
Belgium
Apetra
--/-- /AAn
20%
APETRA
N
Dexia Crédit Local
Aa3s/AA/AA
(grandfathered debt)
0%
DEXGRP
Y
Overview: Dexia Crédit Local (DCL) was one of the three principal entities of the
Dexia Group, the Franco-Belgian financial group created in 1996 through the merger
of Crédit Local de France and Crédit Communal de Belgique. The two credit
institutions specialized in the financing of local governments and participants in local
economies. Dexia Group was dismantled in October 2011 and the European
Commission approved an orderly resolution plan in 2012. DCL as the residual entity
holds the assets remaining after the disposals of the group's viable franchises. These
assets will be managed in run-off until extinction or until they can be disposed of.
DCL relies on state guaranteed debt and secured financing from central banks. DCL
no longer originates new business. Total assets: EUR 247.1bn (2014, company data)
Ownership: Governments of Belgium (50.02%) and France (44.40%) as well as
institutional, individual and employee shareholder (5.58%).
Support: Under the state guarantee scheme, a guarantee is provided on a several
but not on a joint basis by the governments of Belgium, France and Luxembourg
(51.41%, 45.59% and 3% respectively). The guarantee has a EUR 85bn ceiling and
matures in December 2031.
Strengths (Moody’s): The systemic support from the governments of Belgium, France
and Luxembourg is very strong. This is supported by a subscription of the Belgian and
French states to EUR 5.5 billion in preference shares on 31 December 2012.
Challenges (S&P): The EU framework on bank resolution (BRRD), aimed at
restricting government support and conditional upon the observance of tight
conditions might have negative implications on senior creditors, even though the
odds of burden sharing being imposed to Dexia's senior creditors are very low.
UniCredit Research
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Germany*
Bayerische Landesbodenkreditanstalt
--/AAAs/--
0%
BYLABO
N
Overview: BayernLabo is a Bavarian public institution for housing and urban
development. It was established under Bayerische Landesbank Law and is a legally
dependent institution within BayernLB, yet organizationally and financially
independent. Moreover, by law, BayernLabo's assets remain separate from those of
BayernLB ("Sondervermögen"). Total assets: EUR 24.6bn (2013 company data).
Ownership: State of Bavaria.
Support: Explicit, unconditional, and direct guarantee from the state of Bavaria.
Strengths (S&P): Almost certain likelihood of extraordinary government support
from the State of Bavaria; role as an arm of the government fulfilling public policy
goals; benefitting from a state guarantee; comfortable capitalization and funding.
Weakenesses (S&P): Constrained business model due to its public policy role; low
lending margins, reflecting the public policy role and the resulting lack of internal
capital generation; dependent on the parent, Bayerische Landesbank.
Erdölbevorratungsverband
--/AAAs/--
0%
German Postal Pensions
Securitization
Aaa/AAAn/AAAs
20%
EBVGR
N
GPPS
Y
Overview: The German Postal Pensions Securitization (GPPS) was created in 2001.
The net proceeds from the GPPS bonds were used to purchase present and future
claims of BPS-PT (Bundes-Pensions-Service fuer Post und Telekommunikation e.V.)
against the successor companies of Deutsche Bundespost (the postal successor
companies or PSCs). The bonds are securitisations of pension obligations and
medical aid payments due to be paid by the PSCs to retired civil servants previously
employed by Deutsche Bundespost or one of the PSCs. All of BPS-PT's rights and
obligations have been transferred to the federal government institution Bundesanstalt
für Post und Telekommunikation Deutsche Bundespost (BAnst PT), which is BPSPT's legal successor.
Ownership: GPPS is an Irish SPV, owned by BAnst PT.
Support: GPPS does not enjoy an explicit guarantee, but receives solid explicit and
implicit support from the Federal Republic of Germany. The credit risk of GPPS
bonds are credit linked to those of the Federal Republic.
*Note that there are other smaller German agencies that we do not feature here as they are not very active in the capital markets: Bremer Aufbaubank, Sächsische
Aufbaubank, Thüringer Aufbaubank, Investitionsbank Hessen AG, Investitionsbank des Landes Brandenburg and Hamburgische Wohnungsbaukreditanstalt,
Saarländische Investitionskreditbank AG, to name a few.
UniCredit Research
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Aa1s/AA-s/AAAs
0%
Profile
Germany ctd.
Erste Abwicklungsanstalt
ERSTAA
Y
Overview: EAA is the first deconsolidated entity with partial legal capacity established
in Germany (in December 2009). Its sole purpose is to wind down a portfolio of
assets that has been taken over from WestLB AG. The assets include distressed and
non-strategic parts of WestLB. EAA has taken over a portfolio totaling EUR 77.5bn
(nominal) and liabilities worth about EUR 27bn. In July 2012, a second portfolio
transfer of about EUR 100bn was executed. According to the business plan EAA
aims to halve its portfolio by the end of 2016. In the first half of 2014, the total
portfolio was significantly reduced to EUR 92bn. The portfolio decreased faster than
expected. Total assets: EUR 80.0 bn (3Q14 company data).
Ownership: 48.2% state of North Rhine-Westphalia, the two savings banks’
associations in NRW (50%), and two regional authorities in NRW (1.8%).
Support: Loss compensation mechanism ("Verlustausgleichspflicht"), according to
Section 7 of EAA's statute, with the main support provider being the state of North
Rhine-Westphalia.
Strengths (Moody's): Direct credit linkages with the state of Nordrhein-Westfalen,
its main shareholder; systemic support in the form of guarantees provided under the
framework of FMStFG, the federal bill regulating the creation of winding-up entities;
liquidity support, which is ensured by the support providers.
Challenges (Moody's): Exposure to financial market developments.
FMS Wertmanagement
Aaas/AAAs/AAAs
0%
FMSWER
Y
Overview: FMSWER is the deconsolidated entity of Hypo Real Estate Group (HRE)
and was established in July 2010. Its aim is to wind down non-strategic assets and
risky positions. At end-September 2010, assets worth about EUR 173bn (nominal)
were transferred from HRE to FMSWER. Total assets: EUR 181.1bn (1H14 company data).
Ownership: 100% owned by the German Financial Market Stabilization Fund
(SoFFin), which is in turn owned by the Financial Market Stabilization Agency
(FMSA). Thus, FMSWER is indirectly owned by the Federal Republic of Germany.
Support: Loss compensation mechanism ("Verlustausgleichspflicht"), with the main
support provider being the SoFFin, which is owned by FMSA. The latter is owned by
Germany. Thus, ultimately Germany is responsible. Also, FMSWER received an
explicit unconditional and irrevocable guarantee from the Republic of Germany as of
Janaury 2014. This guarantee holds for forthcoming bond issues as well as for
outstanding bonds.
Strengths (Moody's): Loss compensation mechanism with the German government
as ultimate obligor; explicit guarantee from SoFFin.
Challenges (Moody's): Very weak asset quality; long-term, complex and illiquid
assets dominate; large maturity mismatch between assets and liabilities; reliance on
wholesale funding.
HSH Finanzfonds
--/--/AAAs
0%
HSHFF
N
Overview: HSH Finanzfonds is a special purpose entity. The company was
established as a public institution by the Free and Hanseatic City of Hamburg and
Schleswig-Holstein. It takes over the role of capital support of HSH Nordbank AG
from the two shareholders, in which the countries are equally involved. This support
is to meet the capital requirements that are placed at the HSH Nordbank.
Ownership: The Free and Hanseatic City of Hamburg and the State of SchleswigHolstein, each hold 50% of the institution's assets.
Support: HSH Finanzfonds benefits from a maintenance obligation ("Anstaltslast"),
guarantee obligation ("Gewährträgerhaftung") and from the direct and unconditional
guarantee of the state of Schleswig-Holstein and the Free and Hanseatic City of Hamburg.
Investitionsbank Berlin
--/--/AAAs
0%
IBB
N
Overview: Investitionsbank Berlin is the business development and promotion bank
of the state of Berlin, Germany's capital. The bank supports SMEs in Berlin and
helps them to improve their performance and to open to new markets. Total assets:
Ownership: State of Berlin.
Support: Maintenance obligation; direct guarantee from the state of Berlin.
UniCredit Research
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Aaas/AAAs/AAAs
0%
Profile
Germany ctd.
KfW Bankengruppe
KFW
Y
Overview: KfW Bankengruppe is Germany’s flagship development bank that serves
the public policy objectives of the Federal Republic of Germany. The majority of its
credit business is covered by guarantees from the federal state and municipal
governments, or is in the form of bank loans or trust loans. Its project and export
finance business has been outsourced and operates as a legally independent
commercial bank (KfW IPEX-Bank) since 1 January 2008 without a state guarantee.
Total assets: EUR 464.8bn (2013 company data).
Ownership: 80% directly owned by the Federal Republic of Germany, 20% by the
16 German states.
Support: KfW benefits from a direct, unconditional, and irrevocable guarantee from
the Federal Republic of Germany and a maintenance obligation ("Anstaltslast").
Strengths (S&P): An explicit guarantee from the Federal Republic of Germany
covers KfW's liabilities, and KfW benefits from the government's legal maintenance
obligation (Anstaltslast); in our opinion, there is an "almost certain" likelihood that
KfW would receive timely and sufficient extraordinary support from the German
government in the event of financial distress; we see KfW as having a "critical"
public policy role for, and an "integral" link with the government, because it supports
the government's economic policy objectives.
Challenges (S&P): The rating is contingent on government support through the
maintenance obligation and federal guarantee.
Landeskreditbank BadenWürttemberg Förderbank
AAAs/AAAs/AAAs
0%
LBANK
Y
Overview: L-Bank is a special purpose bank that implements state and economic
policy by promoting residential housing, SMEs, technical advancement, the export
industry and protection of the environment, as well as providing risk capital with a
focus on business start-ups, and supporting the arts and science. Total assets:
Ownership: State of Baden-Wuerttemberg.
Support: L-Bank benefits from a maintenance obligation ("Anstaltslast"), a guarantee
obligation ("Gewährträgerhaftung") and the direct and unconditional guarantee of
the state of Baden-Wuerttemberg.
Strengths (S&P): "Almost certain" likelihood of support from the sole owner, the
State of Baden-Wuerttemberg; role as sole state development bank; benefits from a
threefold state guarantee; stable legal framework for operations; comfortable
liquidity and funding.
Challenges (S&P): Business model set by public policy mandate; low lending
margins in core business, reflecting the bank's developmental role.
Landwirtschaftliche
Rentenbank
Aaas/AAAs/AAAs
0%
RENTEN
Y
Overview: Rentenbank is a specialized development bank with a public policy
mandate to promote German agriculture (including forestry and fisheries) and rural
areas. Total assets: EUR 78.3 (2013 company data).
Ownership: No natural or legal entity holds any property rights over Rentenbank.
Support: Rentenbank benefits from a maintenance obligation ("Anstaltslast") from
the Federal Republic of Germany. As of January 2014 the German government
provides an explicit, unconditional and irrevocable guarantee for all obligations of
Rentenbank. This guarantee was introduced on the back of Basle III regulations
(CRD IV/CRR). The guarantee holds for forthcoming bond issues as well as for
outstanding bonds.
Strengths (S&P): "Almost certain" likelihood of extraordinary support from the
German government in times of financial stress; critical role in the pursuit of
government policies and an integral link with the government; low-risk operational
strategy, a stable financial profile, and strong capitalization.
Challenges (S&P): Near impossibility of raising additional shareholder capital due
to ownership structure.
UniCredit Research
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Aaas/--/--
0%
Profile
Germany ctd.
LFA Förderbank Bayern
BAYLAN
N
Overview: LFA is a special purpose bank that was established in 1951 to finance
the economic reconstruction of Bavaria. LFA is responsible for various Bavarian
regional economic programs targeted towards SMEs, "start-ups", infrastructure
development, transportation, environmental protection, tourism, and vocational
training. Total assets: EUR 22.1bn (2013 company data).
Ownership: State of Bavaria.
Support: LFA benefits from a maintenance obligation ("Anstaltslast"), guarantee
obligation ("Gewährträgerhaftung"), and an explicit, unconditional and irrevocable
guarantee of the State of Bavaria.
Strengths (Moody's): High concentration in banking industry mitigated by recourse
to end-borrower; conservative business profile underpinned by comfortable capital
cushion; sound and prudent liquidity management.
Challenges (Moody's): Earnings stable, yet under pressure from low-yield environment.
NRW.Bank
Aa1s/AA-s/AAAs
0%
NRWBK
Y
Overview: NRWBK is the development bank for the state of North-RhineWestphalia (NRW) and was established as Landesbank NRW on 1 August 2002. It
offers the full range of financial development products in the areas of economic
development, social housing construction and infrastructure finance. Total assets:
Ownership: State of North-Rhine-Westphalia.
Support: NRW.Bank benefits from a maintenance obligation ("Anstaltslast"), guarantee
obligation ("Gewährträgerhaftung") and an explicit, unconditional and irrevocable
guarantee of the state of North Rhine-Westphalia.
Strengths (S&P): Almost certain likelihood of support from the sole owner, the state of
North Rhine-Westphalia (NRW); role as the only state development bank; state
guarantee; stable legal framework for operations; comfortable liquidity and funding due
to its quasi-subsovereign risk status.
Challenges (S&P): Constraints on the business model owing to its public policy
role; low lending margins in the core business, reflecting its purpose as a
development bank; reliance on profits from investment activities to build a buffer for
promotional lending.
WIBank
--/AAs/--
0%
WIBANK
N
Overview: WIBank is the state development bank for the German state of Hessen.
It has a critical role for the state as it supports regional economic and social objectives.
WIBank is a legally dependent institution within Helaba, yet organizationally and
financially independent. Total assets: EUR 14.5bn (2013 company data).
Ownership: WIBank is a legally dependent institution within Helaba and, in turn,
Helaba is owned by the savings banks association of Hessen and Thüringen (68.8%),
savings banks associations of Rhineland & Westfalen-Lippe, savings banks guarantee
gunds and the guarantee fund of the Landesbanks collectively own 19.0%, German
state of Thuringia (4.05%), and the German state of Hessen (8.10%).
Support: WIBank benefits from a guarantee obligation (Gewährträgerhaftung) and
an explicit, unconditional, and direct guarantee from the German state of Hessen.
Strengths (S&P): Almost certain likelihood of extraordinary government support from
Germany's state of Hesse; essentially acts as an arm of the government to fulfil public
policy goals; benefits from a statutory guarantee and a guarantee on its liabilities.
Challenges (S&P): Constrained business model due to its public policy role; ringfenced
institution within Helaba, and therefore largely relies on Helaba for operations.
UniCredit Research
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Italy
Cassa Depositi e
Prestiti S.p.A.
Baa2s/BBBs/BBB+s
50%
CDEP
N
Overview: Cassa Depositi e Prestiti SpA (CDP) is a specialized lender providing
financing to the Italian public sector. Its public-policy mission comprises the
development of public investment, local utility infrastructure, and large public
projects of national interest. CDP has an important public-policy role, and channels
retail deposits collected via the post office network into public sector financing. Two
entities make up CDP’s business model: the segregated activity (SA or gestione
separata) and the ordinary activity (OA or gestione ordinaria). The SA is CDP’s
dominant lending business, comprising more than 94% of the total loan book. It
provides medium to long term financing to the Italian public sector. It funds itself
largely via state-guaranteed postal savings. The OA funds public infrastructure
projects that are owned and managed by private law companies (including project
finance). It makes up 6% of the total loan book (2012). Total assets: EUR 366.7bn
(1H14 company data).
Ownership: 80.1% owned by the Italian state and 18.4% by 63 different banking
foundations, 1.5% treasury shares.
Support: CDP benefits from strong government support, is considered an important
tool for public policy, and is closely supervised and monitored by the Ministry of
Finance. Borrowing under CDP’s Segregated Activity (SA; 6% of loan book) has an
unconditional and irrevocable guarantee from the Italian state, while borrowing
related to CDP’s Ordinary Activity (OA; 94% of loan book) has no formal
government support. However, the guarantee on part of CDP's obligations is de
facto extended to the non-guaranteed part of funding.
Strengths (Moody's): Dominant player in public sector financing; good asset
quality; solid liquidity and funding profile.
Challenges (Moody's): Significant, albeit declining, market risk coming from large
equity stakes.
Netherlands
Bank Nederlandse
Gemeenten
Aaas/AA+s/AAAn
20%
BNG
Y
Overview: BNG is a specialized financial institution mandated with the provision of
cost-efficient funding to the Dutch public sector. It offers customized lending, asset
management, consultancy, payment services and electronic banking to its clients.
As a reflection of the strong link between the Dutch government and BNG, S&P
upgraded its assessment of the role of BNG (as well as Nederlandse
Water-schapsbank) for the Dutch government from “very important” to “critical” in
December 2012. As a consequence, the two Dutch agencies were assigned the
highest possible likelihood of support for an agency without a direct guarantee
according to S&P’s rating criteria. Total assets: EUR 131.2bn (2013 company data).
Ownership: 50% Dutch government and 50% local governments.
Support: Implicit government support is very strong due to the public sector mandate,
importance to the Dutch economy and tight integration with the local governments.
Strengths (S&P): Extremely high likelihood of extraordinary government support;
leading lender to Dutch public authorities, supporting very strong asset quality;
sound capitalization.
Challenges (S&P): Sector and geographic concentration with limited diversification
of income sources; moderate capital generation due to low lending margins; some
earnings volatility from fair-value movements.
UniCredit Research
page 16
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Aaan/AA+s/--
20%
NEDWBK
Profile
Netherlands ctd.
Nederlandse
Waterschapsbank
Y
Overview: NEDWBK is a specialized financial institution charged with providing costefficient funding to the Dutch public sector and the water boards (waterschappen). As
a reflection of the strong link between the Dutch government and NEDWBK, S&P
upgraded its assessment of the role of NEDWBK (as well as BNG) for the Dutch
government from “very important” to “critical” in December 2012. As a result, the two
Dutch agencies were assigned the highest possible likelihood of support for an
agency without a direct guarantee, according to S&P’s rating criteria. Total assets:
EUR 73.0bn (2013, company data).
Ownership: 81% water control boards, 17% Dutch state and 2% provinces.
Support: Implicit government support is very strong due to the public sector mandate,
importance to the Dutch economy and tight integration with the local governments.
Strengths (S&P): Extremely high likelihood of extraordinary government support;
focus on low-risk Dutch public sector lending, supporting very strong asset quality;
extremely strong capital base.
Challenges (S&P): Sector and geographic concentration with limited diversification
of income sources; moderate capital generation due to low lending margins; some
earnings volatility from fair-value movements.
Propertize
Aaas/--/AAAs
0%
PROPBV
N
Overview: Propertize is an entity responsible for the property finance assets of Dutch
SNS REAAL. SNS REAAL split off Property Finance at the end of 2013 and changed
its name to Propertize. It received a guarantee from the Dutch state. Propertize wil
wind down its loan portfolio and property projects in the coming 10 years. Propertize
is issuing bonds under a EUR 4bn guaranteed euro commercial paper program
(EMTN). The proceeds of the program are used to repay the state guaranteed
funding provided by SNS Bank to Propertize. Total assets: EUR 6.1bn (2013,
company data).
Ownership: The investment institution of the Dutch state, Stichting
Administratiekantoor Beheer Financiele Instelligen (NLFI), owns 100% of the shares
of Propertize. NLFI was set up by the Dutch ministry of Finance in 2011.
Support: Bonds issued under Propertize’s funding program carry an explicit,
irrevocable and unconditional guarantee from the Dutch government.
Strengths (Fitch): The guarantee of the Dutch state ensures that payments are met
on demand; expectation that claims will be made in a timely manner, reflecting the
strong commitment of the Dutch sovereign to preserving financial stability.
Challenges (Fitch): PROPBV’s rating moves in line with the rating of the Dutch
sovereign; a downgrade of the sovereign rating would effect a downgrade of
PROPBV’s funding program.
Nordics
Finnvera
(Finland)
Aaas/AA+s/--
0%
FINNVE
N
Overview: Finnvera is Finland's official export credit agency and a domestic lender
that offers loans and guarantees to Finland-based SMEs. Finnvera also has venture
capital activities to be spun off into a separate government entity. Finnvera assists
companies with start-up financing, working capital and funds for cyclically weak
economic conditions. It also helps companies to develop international operations.
Finnvera’s domestic guarantees can be used as security against lending obtained from
other sources. Total assets: EUR 5.9bn (3Q14 company data).
Ownership: 100% owned by the State of Finland.
Support: The Finnish government provides a statutory government guarantee up to
a limit of EUR 5bn for Finnvera’s debt obligations. The full principal value of the new
EUR 3bn EMTN program has an explicit, unconditional and irrevocable guarantee as
well as any "defaults or other interests" or swaps/hedges related to those obligations.
Strengths (Moody's): 100% ownership by the Finnish government, debt obligations
are explicitly guaranteed by the Republic of Finland.
Challenges (Moody's): Finnvera assists companies with funds for coping with
cyclically weak economic conditions because Finland’s economy has experienced
adverse sector-specific shocks in key industries.
UniCredit Research
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Aaas/AAAs/--
0%
KOMMUN
Profile
Nordics ctd.
KommuneKredit
(Denmark)
N
Overview: KommuneKredit, which was established in 1898, operates as a financing
vehicle with the sole purpose of providing its members with low-cost funding.
Membership is restricted to Danish local governments (whose borrowings are strictly
controlled by the central government) and entities guaranteed by local governments.
KommuneKredit is the oldest specialized local government lender in the Nordic
region. KommuneKredit reports directly to the Ministry of the Interior and Health,
which also oversees the local government sector. The legal framework of
KommuneKredit was amended by a new Act, which came into effect on 1 January
2007 regarding the requirement for equity capital as well as regulation on prefunding.
Total assets: DKK 184.2bn (2013 company data).
Membership: All 98 Danish municipalities and all five regions are members.
Support: Members provide a joint and several guarantee for all of the institution's
obligations.
Strengths (Moody's): Very strong public policy role, in terms of being the prime loan
provider to Danish local and regional governments; joint and several guarantees by
all Danish municipalities and regions; special status from government legislation that
limits exposure to regulatory risks; excellent asset quality in its loan book and
investments in highly rated securities; conservative asset-liability management; very
strong capitalization.
Challenges (S&P): Dependence on wholesale funding and no access to central bank
financing, which could potentially pose slight funding and liquidity risks; some
concentration risks in lending and derivative counterparty exposures.
Kommuninvest (Sweden)
Aaas/AAAs/--
0%
KOMINS
N
Overview: Kommuninvest is a non-profit local government-funding agency, which
aims to provide low-cost funding for its members. Kommuninvest borrows on the
capital markets and lends to its members. With 12 members in 1986, Kommuninvest
started operations as a regional project for inter-municipal financing cooperation in
the county of Örebro (Örebro län). Membership was opened to all Swedish
municipalities and counties in 1993, and the company has since experienced very rapid
growth. In early 2010, Kommuninvest AB became a counterparty of the Swedish
central bank (Riksbank). Total assets: SEK 286.7bn (1H14 company data).
Membership: At the beginning of 2015, total membership of Kommuninvest
Cooperative Society increased to 280 (from total 310).
Support: Joint and several guarantees are provided by its members.
Strengths (S&P): Very strong public policy role, in terms of being the prime loan
provider to Danish local and regional governments; joint and several guarantees by
all Danish municipalities and regions; special status from government legislation that
limits exposure to regulatory risks; excellent asset quality in the loan book and
investments in highly rated securities; conservative asset-liability management; very
strong capitalization.
Challenges (S&P): Dependence on wholesale funding and no access to central bank
financing, which could potentially pose slight funding and liquidity risks; some
concentration risks in lending and derivative counterparty exposures.
UniCredit Research
page 18
<date>
March 2015
Credit Research
Sector Report SSA
Issuer/ Entity
Credit Ratings
Basel II –
Ticker/
Stand. App. iBoxx
Aaas/AAAs/--
20%
Profile
Nordics ctd.
Kommunalbanken
(Norway)
KBN
N
Overview: Kommunalbanken operates as a special-purpose funding entity for the
Norwegian regional and local government sector (including partnerships of, and
entities guaranteed by, local governments). It provides low-cost funding to the sector
and promotes competition in the market for municipal loans. In addition,
Kommunalbanken also grants loans to local government companies, backed by
municipal guarantees. KBN holds a market share of ca. 50% of all local government
financing in Norway, including municipal companies. Over 98% of Norwegian
municipalities (essentially all those seeking financing) borrow from KBN. Total
assets: NOK 398.0bn (1H14 company data).
Ownership: 100% owned by the Norwegian government.
Support: Kommunalbanken enjoys very strong implicit support from the Kingdom of
Norway, which is based on a strong letter of support.
Strengths (S&P): Extremely high likelihood of extraordinary support, given our view
of the agency's integral link with and very important role for the Norwegian
government;
Challenges (S&P): Dependence on wholesale funding and no access to central
bank financing, which adds to funding risk; some concentration risks in lending and
derivative counterparty exposures.
Municipality Finance
(Finland)
Aaas/AA+s/--
0%
KUNTA
N
Overview: Municipality Finance was established in May 2001 through a merger
between Municipal Housing Finance Plc (MHF) and Municipality Finance Plc (old
MuniFin). It operates as a funding vehicle for the Finnish local government and for
the public housing sector. KUNTA can only lend to members of the Municipal
Guarantee Board, companies owned by the Municipal Guarantee Board and to
entities guaranteed by the Republic of Finland. Total assets: EUR 28.2bn for the full
year 1H14 (company data).
Ownership: KUNTA is 31% owned by Keva (formerly the Local Government
Pension Institute) and 16% owned by the Finnish government. The remaining
shares are held by 294 local governments and local-government-related
organizations.
Support: MuniFin's funding is guaranteed by the Municipal Guarantee Board, with
member local governments covering 99% of Finland's population. Municipal
Guarantee Board's liabilities and expenses are, in turn, jointly guaranteed by those
Finnish municipalities that make up its membership.
Strengths (S&P): Ultimate guarantee from Finnish municipalities through guarantee
institution Municipal Guarantee Board; central bank access, enabling very strong
liquidity position; excellent asset quality in the loan book and securities portfolio;
continued active capital strengthening in preparation for upcoming regulatory
requirements; conservative risk management with strong monitoring capacities.
Challenges (S&P): Funding risk due to dependence on wholesale markets and
sizable volumes of callable liabilities, some concentration risk in lending due to
public policy mandate.
Swedish Export
Credit Corp
Aa1s/AA+s/--
20%
SEK
N
Overview: SEK is a specialized provider of long-term financial solutions. Loans are
extended to any area of Swedish economic life that is directly or indirectly linked to
the export industry. In recent years, the company has also lent to municipalities. To
widen its revenue base and leverage its expertise, SEK has developed advisory
services and also engaged in arranging debt capital market transactions across the
Nordic region. Total assets: EUR 34.8bn (SEK 316.9bn; 3Q14 company data).
Ownership: 100% owned by the Kingdom of Sweden.
Support: Government support is deemed highly likely due to its ownership.
Strengths (S&P): Extremely high likelihood of government support, very good loan
asset quality, robust capitalization.
Challenges (S&P): Concentration on large individual exposures, low profitability,
total reliance on wholesale funding.
UniCredit Research
page 19
<date>
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Credit Research
Sector Report SSA
Issuer/Entity
Credit Ratings
Basel II –
Ticker/
Stand. App. iBoxx
A2n/An/--
20%
Profile
Nordics ctd.
SBAB BANK
SBAB
Y
Overview: SBAB is a large Swedish mortgage institution. It services both corporate
and household clients but targets the household segment in particular. In March
2011, SBAB was removed from the government's "for sale" list after a close vote in
parliament. SBAB also adopted a full banking license. Total assets: EUR 36.5bn
(SEK 333.8bn, 1H14 company data).
Ownership: 100% owned by the Swedish government.
Support: The Swedish government provides a commitment of support. This is
demonstrated by 1. the explicit support by the government through a fee-based
subordinated credit facility and 2. an ownership clause for EMTN-bondholders,
which grants a right of early redemption should the government ownership drop
below 51%.
Strengths (S&P):Strong capital levels, minimal credit losses, stable market position
in mortgage lending.
Challenges (S&P): Business model highly concentrated on the Swedish property
market; narrow product offering; dependent on wholesale funding, though deposit
franchise is improving.
Slovenia
SID Bank
Baa3s/A-s/--
0%
SEDABI
N
Overview: SID Banka was established in 1992 as the Slovene Export Corporation
with the aim of providing insurance and financing for exports of Slovenian
companies. Its mandate was expanded in 2007 to include, among others, financing
of SMEs, research and development, regional development, environment and
energy. Total assets: EUR 3.5 (3Q14 company data).
Ownership: 100% owned by the Republic of Slovenia.
Support: SID Banka's debt obligations benefit from an explicit, timely, unconditional
and irrevocable guarantee from the Republic of Slovenia.
Spain
Corporación de Reservas Baa3p/BBBs/BBB+s
Estratégicas de
Productos Petrolíferos
100%
Fondo de Amortizacion
del Deficit Electrico
0%
Baa2/BBB/BBB+s
CORES
Please refer to the section “Agencies managing strategic petroleum reserves”
N
FADE
Y
Overview: The Spanish Electricity Deficit Amortization Fund was established to
securitize the tariff deficit that has accumulated since 2000 by electricity companies
operating in Spain. Legally, FADE is a securitization vehicle.
Support: FADE's debt obligations (up to EUR 26 bn) benefit from an explicit, timely,
unconditional and irrevocable guarantee from the Kingdom of Spain.
Fondo de
Reestructuracion
Ordenada Bancaria
Baa2p/BBB/BBB+s
0%
FROB
Y
Overview: FROB was established to maintain confidence in the Spanish banking
system. It manages the restructuring of credit institutions and reinforces these
institutions' own resources. FROB also plays an important role in the European
Stability Mechanism program for the Spanish banking sector.
Ownership: 75% owned by the Spanish government, with the remainder owned by
the Deposit Guarantee Fund of Banks, the Deposit Guarantee Fund of Savings
Banks and the Deposit Guarantee Fund of Credit Cooperatives.
Support: FROB's debt obligations benefit from an explicit, timely, unconditional and
irrevocable guarantee by the Kingdom of Spain.
Institut Catala de
Finances
--/BBs/BBB-n
20%
INCAFI
N
Overview: INCAFI is a public entity subject to private law, which channels public
credit and provides long-term financing to foster the economic and social
development of Catalonia in line with finance policies, complementing private
financing. INCAFI does not have a banking license, but its accounts are subject to
Spanish banking regulations. Total assets: EUR 3.8bn (2013 S&P).
Ownership: Spanish region of Catalonia (100%).
Support: Strong explicit support from the government of Catalonia.
Strengths (S&P): Strong ongoing support from the Catalan government through
guarantees on all debt and capital injections if needed, economic importance as a
Catalan government financial agency and a financing entity for the region's key
business sectors, adequate capitalization.
Challenges (S&P): Historically low profitability due to its public-service role, high
geographic and single-name concentration, weak financial profile.
UniCredit Research
page 20
<date>
March 2015
Credit Research
Sector Report SSA
Issuer/Entity
Credit Ratings
Basel II –
Ticker/
Stand. App. iBoxx
Profile
Spain
Instituto de Crédito Oficial Baa2p/BBBs/BBB+s
0%
ICO
Y
Overview: Instituto de Crédito Oficial (ICO) is a specialized credit institution offering
financing for enterprises in Spain, the founding of enterprises, technological
innovation, renewable energy sources, housing, film exhibiting and film making,
foreign aid. Since 2012, ICO has also provided support to regions in Spain. ICO
supports economic activities that contribute to the growth and improved distribution
of national wealth. It acts as a state-owned bank and the state’s financial agency.
Total assets: EUR 102.2bn (2013 company data).
Ownership: Kingdom of Spain (100%).
Support: ICO debt obligations benefit from an explicit, timely, unconditional and
irrevocable guarantee from the Kingdom of Spain.
Strengths (S&P): Strong ongoing support from the Spanish government through
guarantees on all debt and capital injections, special status as the Spanish
government's financial agency, key role in implementing financial aspects of national
strategic economic policies and in providing extraordinary financial support to
mitigate the impact of Spain's economic crisis.
Challenges (S&P): Historically low profitability due to its public-service role;
business concentration in Spain, where economic risk is higher than the average in
peer countries.
United Kingdom
Network Rail
Aa1s/AAA/AA+s**
Infrastructure Finance Plc
0%**
UKRAIL
N
Overview: Network Rail Infrastructure Finance (NRIF) is a special-purpose vehicle
that issues debt on behalf of Network Rail Ltd (NRL) and then lends the proceeds to
Network Rail Infrastructure Ltd. (NRIL) under an intercompany loan agreement.
NRIL is the owner and operator of the UK's rail infrastructure network. NRL, a
company limited by guarantee, wholly owns NRIL through subsidiary Network Rail
Hold Co Ltd.
Support: The unconditional, irrevocable and explicit guarantee is provided by the
Secretary of State for Transport for NRIF’s GBP 40bn debt program and GBP 4bn
CP program.
**applies to specific bonds or programs that are government-guaranteed
current ratings: Moody’s/S&P/Fitch; outlooks: s=stable, p=positive, n=negative, wp=watch positive, wn=watch negative, wd=watch developing
included in iBoxx Sub-Sovereigns: Y=yes, N=no
UniCredit Research
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Credit Research
Sector Report SSA
Agencies managing strategic petroleum reserves
Strategic Petroleum
Reserves (SPR)
There are several European agencies that manage strategic petroleum reserves in Europe.
These include APETRA in Belgium, CORES of Spain, EBV of Germany, ELG in Austria and
SAGESS in France. Strategic petroleum reserves are considered crucial and strategic in
countries heavily dependent on imported energy. All agencies are established under public law
and most have members (the domestic petroleum companies) rather than shareholders.
APETRA alone is 100% owned by the Beglian government. None of these special agencies
are directly guaranteed by their respective governments, but they operate under a favorable
and regulatory and are required to balance their budgets.
AGENCIES MANAGING STRATEGIC POETROLEUM RESERVES
Issuer/ Entity
Credit Ratings
Basel II –
Ticker/
Stand. App. iBoxx
Apetra
--/-- /AAn
20%
APETRA
N
Profile
Overview: APETRA is in charge of ensuring the security of the oil supply for
Belgium and enables the country to fulfil its international obligations requiring it to
own a minimum stock of crude oil and petroleum products, the objective of which
are to protect the state from the consequences of a disruption to the oil supply.
APETRA was created by royal decree on 15 June 2006 (for an indefinite period) as
a limited liability company, governed by public law with a social objective and
legally distinct from the state. APETRA is financially autonomous, is governed by
its own board of directors, has control over its own assets and budget and can be
party to legal proceedings.
Ownership: Belgian government.
Support (Fitch): Strong implicit support of the Belgian sovereign due to the
stratetic mission and close state supervision and control of APETRA. Good liquidity
is given.
Strengths (Fitch): State backing, strategic importance, tight supervision by the
state, strong budgetary performance, good liquidity.
Challenges (Fitch): No formal support mechanism, refinancing risk.
Corporación de Reservas
Estratégicas de Productos
Petrolíferos
Baa3p/BBBs/BBB+s
100%
CORES
N
Overview: CORES is the organization responsible for managing the strategic oil
reserves and controlling compulsory reserves in Spain. By law, all companies
authorized to distribute oil products in Spain must be members of CORES and pay
its monthly fees or risk losing their licenses. CORES was created in October 1994
by means of Royal Decree 2111, which granted the corporation a mandate to
constitute, maintain and manage Spain's strategic oil stocks. CORES is regarded
as a corporation governed by public law but with a legal personality and capacity to
act under private law. Total assets: EUR 2.1bn (2013 S&P).
Membership: All oil and gas operators and importers in Spain.
Support: Its legal status as a quasi-state entity embedded in a rigid legal framework
ensures strong state support, albeit not explicit.
Strengths (S&P): Almost certain likelihood of timely and sufficient extraordinary
government support in the event of financial stress, high strategic importance for
the Spanish state and economy, strong legal and regulatory status, solid and
predictable funding profile and financial flexibility as a result of excess reserves
available for sale.
Challenges (S&P): Lack of explicit guarantees from the state, limited asset
diversification.
UniCredit Research
page 22
<date>
March 2015
Credit Research
Sector Report SSA
Issuer/ Entity
Credit Ratings
Basel II –
Ticker/
Stand. App. iBoxx
Erdölbevorratungsverband
--/AAAs/--
0%
EBVGR
N
Profile
Overview: EBV is the German agency responsible for the country’s strategic
petroleum reserves (its legal status is that of a quasi-state entity). EBV is
supervised by the Federal Ministry of Economy and Technology, has no
shareholders and is not subject to corporate income or trade tax.
Membership: All companies operating in Germany as importers, refiners or traders
of oil products must become fee-paying EBV members (it had 111 members as of
31 December 2014).
Support: By law, EBV cannot be subject to bankruptcy proceedings and, in the
event of liquidation, its debt would be assumed by the federal government.
Strengths (S&P): Almost certain likelihood of extraordinary support from the
Federal Republic of Germany due to EBV's strategic importance, legal status as a
quasi-state entity enjoying a favorable financial regime, reliable fee-based funding
system with a full cost-coverage mechanism, very strong financial position due to
large hidden reserves.
Challenges (S&P): Limited asset diversification.
m.b.H.
--/AA+s/--
20%
ERDLAG
N
Overview: Erdoel-Lagergesellschaft m.b.H (ELG) has been charged with fulfilling
Austria's strategic oil reserve obligations according to international regulations.
ELG was founded in 1976 by Austria's major oil importers on behalf of the Austrian
government. ELG was set up as a private law company owned by private
shareholders but it operates as a non-profit institution in accordance with the
requirements in the EU directive governing compulsory reserve requirements for
EU member states.
Ownership: 55.6% OMV Refining & Marketing GmbHm, 23.1% BP Europe SE,
16.7% Shell Austria GmbH and 4.6% ENI Austria GmbH.
Support: Strong implicit support from the Austrian sovereign due to the stratetic
mission and close state supervision and control.
Strengths (S&P): "Critical" and legally defined role as the sole central
stockholding entity fulfilling Austria's international oil stockholding obligations;
integral link with the Austrian government through a legal mandate and Austria's
full stakeholder interest, although privately owned; partial guarantees from Austria
to finance stockholdings and prefinancing of payment obligations for the
subsequent 12 months; a strong framework ensuring that fees fully cover costs
and operations are self-sustaining.
Challenges (S&P): Dependence of refinancing on developments in capital
markets, limited client and asset diversification.
Société Anonyme de
Gestion des Stocks de
Sécurité
--/AAn/--
20%
SAGESS
N
Overview: Since its establishment in 1988, SAGESS’s mission has been to
maintain and manage the required national strategic oil reseves at any given time.
It aims to ensure better enforcement by safeguarding a satisfactory geographic
distribution of inventories and easing the burden of stockpiling requirements on
companies' balance sheets, especially for smaller operators. SAGESS’s mission
and strategic importance for the French government is about to be reinforced
further: SAGESS will be recognized as France's single central stockholding entity
under the 2009 EU directive on oil stockpiling obligations. SAGESS will retain its
strategic role for the French economy due to France's dependency on imported oil,
the country's international obligations with regard to strategic stockpiling and the
increasing concentration of global reserves in politically volatile regions. Total
assets: EUR 4.6bn (1H14 company data).
Ownership: 31 shareholders – Only those oil companies that are authorized as
warehouse keepers and subject to the strategic storage obligation can become
shareholders.
Support: Strong implicit support from the French sovereign due to the stratetic
mission and close state supervision and control of SAGESS.
Strengths (S&P): Critical role in managing most of France's strategic oil reserves
and fulfilling France's international oil stockpiling obligations; integral link with the
French government, given SAGESS's full integration into French energy policy and
its close state supervision; supportive legal framework.
Challenges (S&P): Absence of formal and explicit guarantee from the French
government.
current ratings: Moody’s/S&P/Fitch; outlooks: s=stable, p=positive, n=negative, wp=watch positive, wn=watch negative, wd=watch developing
included in iBoxx Sub-Sovereigns: Y=Yes, N=No
UniCredit Research
page 23
<date>
March 2015
Credit Research
Sector Report SSA
French EPIC/EPA
Explicit status for
French agencies
In contrast to other European countries, most French agencies operate within their own
legal framework, which provides them with an explicit status. They are categorized as
Établissements Publics (EPs) and are wholly-owned by the French government. An EP can
only be created, transformed or broken up by law or decree of the French government. EPs
typically provide a public service and play an important role in government policy. They are
tightly controlled and monitored by the government, although various ministries also directly or
indirectly influence their management.
Three different categories
The various missions and businesses are reflected in different categories:
■
EPICs (Établissements Public Industriel et Commercial) generate revenues mostly from
industrial or commercial activities. The government's role is to set prices and fees for
services rendered by EPICs.
■
EPAs (Établissements Public à Caractère Administratif) derive their income mostly from
subsidies, as they are not meant to get involved in commercial activities, but instead
provide services on behalf of the government.
■
EPSs (Établissements Public de Santé) derive their revenues from the national social
security system. The French government maintains considerable financial and
operational control.
EPs enjoy implicit
government guarantee
With the state ultimately being responsible for the solvency and liquidity of these entities, an
EP cannot go bankrupt. In the event of a liquidity crisis, they have access to short-term credit
lines from the Caisse de la Dette Publique (CDP), a French Treasury fund. In the event of
liquidation, all of the entities’ liabilities would be assumed by the central government. Thus,
the guarantee from the French government is an implicit one, defined by its status, i.e. a so-called
"statutory guarantee". This contrasts with explicitly guaranteed agencies such as German
development bank KFW, which enjoys a direct guarantee from the Federal Republic of
Germany. Support stemming from the status as an EP is deemed so strong that the ratings of
the French EPs are equalized with the ratings of the Republic of France.
…and very few an
explicit guarantee
The first French agency with an explicit, unconditional and irrevocable sovereign guarantee
for its bonds was SFEF, which was founded during the banking crisis of 2008 as part of the
government's rescue plan for the financial sector. SFEF stopped its issuing activity in October
200 and to date, there are no mor bonds oustanding. However, SFEF could resume its
lending activity if a prime minister's decree would allow it on grounds of exceptional illiquidity
circumstances. We consider this to be extremely unlikely.
There are also certain issuance programs that enjoy an explicit government guarantee. For
example, bonds issued under UNEDIC's annual funding programs have had an explicit,
unconditional and irrevocable guarantee by the Republic of France since 2011. Also, Caisse
Centrale du Crédit Immobilier de France (3cif) has a EUR 16bn explicit, unconditional and
irrevocable guarantee until 2035.
UniCredit Research
page 24
<date>
March 2015
Credit Research
Sector Report SSA
FRENCH EPA/EPIC
Issuer/ Entity
Credit Ratings
Basel II –
Stand. App.
Ticker/
iBoxx
Agence France Locale
Aa2n/--/--
20%
AFLBNKO
N
Profile
Overview: Agence France Locale (AFL) was created in July 2013 by 11 French local
and regional governments (LRGs). Since then, there have been several capital
increases, taking the total number of shareholders to 91 as of February 2015. The
mandate of AFL is to raise cost-efficient funding in the capital markets by pooling
together the funding needs of its member LRGs. AFL has a dual company structure:
1) Agence France Locale - Société Territoriale, 100% owned by French (LRGs), sets
the strategic guidelines for the Group, appoints the supervisory board of its subsidiary
and manages the guarantee mechanism; and 2) Agence France Locale, its
subsidiary, is a credit institution which raises funds in the capital markets and
distributes the proceeds to the LRGs.
Ownership: Wholly-owned by 91 French local and regional governments (as of
February 2015), representing 13% of the French local public sector debt.
Support: Explicit joint and several guarantee from its member LRGs. In addition to
members providing a guarantee up to their respective outstanding borrowings,
members have recourse to the other members in case of default of AFL in order to
ensure a joint liability guarantee system.
Strengths (Moody’s): Strong parental support resulting from the explicit joint and
several guarantee: moderate level of systemic support from the French government;
exposure to French public sector represents high asset quality; strict underwriting
policy; asset portfolio expected to be robust; independence of AFL’s lending
operations; AFL would be able to honour its committmens using its own resources in
the theoretical case of being put in run-off mode.
Challenges (Moody’s): Risk associated with whether AFL will be able to develop its
franchise as expected in line with start-up nature of the bank.
Outstanding bonds (Bloomberg): AFL’s inaugural bond is scheduled to be issued
at the end of 2Q15.
Assistance Publique –
Hôpitaux de Paris
--/AAn/AAs
0%
APHP
N
Overview: APHP is Europe's largest hospital network. It accounts for 10% of all
hospital beds in France. The organization provides a wide variety of health care
services. APHP is an EPS that falls under the jurisdiction of Paris. Due to its
considerable size, it enjoys a special status over other public hospitals. In 2010,
APHP became one of France's 33 regional public hospitals, or Centres Hospitaliers
Régionaux (CHR), which, as state public agencies, can only be created and
dissolved by state decree. By law, the state is ultimately responsible for meeting the
obligations of a CHR, as it would have to take over all its assets and liabilities if it
were dissolved.
Ownership: Wholly-owned by the Republic of France.
Support: As an EPS, APHP operates within a special legal framework and benefits
from strong implicit government support.
Strengths (Fitch): Almost certain likelihood that the French state would provide
timely and sufficient extraordinary financial support; critical role for the French
government, given unique position within France's hospital system; integral link with
the French state, since APHP is subject to close direct and indirect state supervision
and controls; record of strong ongoing state support.
Challenges (Fitch): Revenues are highly dependent on the state’s decisions on
tariff-setting and on general grants to finance APHP’s public health responisbilities.
Agence Française de
Développement
--/AAn/AAs
20%
AGFRNC
Y
Overview: AFD is the principal instrument for French bilateral aid and concessionary
lending to developing countries and to French overseas departments and territories.
AFD is an EPIC and is subject to strict government supervision. As the entity's sole
shareholder, the government appoints the majority of AFD's board members, must
approve all budgets and strategic decisions and strictly monitors funding. Total
assets: EUR 23.6bn (2013 company data).
Ownership: Wholly owned by the Republic of France.
Support: As an EPIC, AFD operates within a special legal framework and benefits
Strengths (S&P): Almost certain extraordinary financial support from the French
government, virtual prompt access to emergency funding from the French treasury through
the government's public debt fund ("Caisse de la Dette Publique"), sovereign mandate for
official development assistance, sound governance and management practices.
Challenges (S&P): Large exposure to speculative-grade counterparties, significantly
deteriorating capital ratios, wholesale funded.
UniCredit Research
page 25
<date>
March 2015
Credit Research
Sector Report SSA
Issuer/ Entity
Credit Ratings
Basel II –
Stand. App.
Ticker/
iBoxx
Caisse Centrale du
Crédit Immobilier de
France (3cif)
Aa1s/--/AAs
0%
CCCI
Y
Profile
Overview: Caisse Centrale du Crédit Immobilier de France (3cif) is the rated funding
entity of Crédit Immobilier de France (CIF). CIF was an independent organization
active in the distribution of housing loans to individuals in France. After Crédit
Immobilier de France was hit by a liquidity crisis in 2012/13, the French state granted
an explicit guarantee to Crédit Immobilier de France in November 2013. Additionally,
the French state grants a EUR 16bn guarantee for new issuances by Caisse Central
du Crédit Immobilier de France (3cif). This guarantee is unconditional, irrevocable
and at first demand. It is valid until 2035. CIF needs funding to cover the difference
between housing loans and short liabilities. France also grants a EUR 12bn internal
guarantee. Total assets EUR 22.4bn (1H2014).
Ownership: CIF is a privately owned French banking group that was hit by a liquidity
crisis in 2012. Negotiations with the French state resulted in an orderly resolution
process for the coming 25 years. 3CIF is 100% owned by Credit Immobilier de
France Developpement (CIFD). It is in turned held by partially state owned Procivis.
Support: Strong government support. Bonds issued by 3cif have an explicit,
unconditional and irrevocable guarantee from the French sovereign. The guarantee is
valid up to 2035.
Strengths (Moodys): The state guarantee ensures adequate funding until extinction;
capitalisation will remain strong throughout run-off; the run-off offers strong indirect
protection to non-guaranteed debt holders.
Challenges (Moody’s): Asset quality has displayed moderate deterioration but is
likely to remain adequate.
Caisse des Depots et
Consignations
Aa1n/AAn/AAs
0%
CDCEPS
Y
Overview: Caisse des Dépôts et Consignations (CDC) is a public financial institution
with a strong link to the French government. It has two distinct business segments.
One specializes in long-term investments to support economic development (referred
to as the “consolidated activities”). The second one pursues other public-interest
missions on behalf of the French government. As of 31 December 2013, the
consolidated activities reported a consolidated asset base of EUR 143.1bn. Including
public missions, total assets are approximately EUR 400bn. Under CDC’s unique
status, its mission is to serve the general interest of the public and to promote the
economic development of France. It is entrusted with various public-interest
missions, engaging at the state’s behest in social housing and local development. It
also engages in other activities, in which it benefits from a monopoly, including
collecting legal deoposits. Total assets: EUR 143.1bn (2013 company data).
Ownership: Wholly-owned by the Republic of France.
Support: As an Établissement Public, CDC operates within a special legal
framework and benefits from strong implicit government support.
Strengths (S&P): Critical public policy role and integral link with the French state,
public sector institution can be seen as an extension of the French government,
sound risk-management practices and corporate governance.
Challenges (S&P): Structural volatility in earnings, capitalization constrained by
sizable equity investments.
Caisse d’ Amortissement
de la Dette Sociale
Aa1n/--/AAs
0%
CADES
Y
Overview: CADES is a state agency that was created in 1996 for the sole purpose of
redeeming French public debt arising from deficits accumulated by the country's
social security system. Originally created for a limited timeframe, CADES' lifespan
has been extended as deficits accumulated by the social security system have
persisted. To enable CADES to repay its debt, it has been endowed with the tax
proceeds from theContribution au Remboursement de la Dette Sociale (CRDS) and,
since 2009, from Contribution Sociale Généralisée (CSG). Since 2011, it has
received additional CSG proceeds and a portion of the Contribution sociale sur les
revenus du capital (CSRC). CADES had assumed debt of EUR 226.7bn at year-end
2014. Of this, EUR 96.74bn has been amortized. Total assets: EUR 11.9bn (2013
company data).
Support: As an EPA, CADES operates within a special legal framework and benefits
from strong implicit government support. Due to its highly important public policy
mission of amoritizing social security debt, government support is extremely high.
Strengths (Moody's): High degree of central government support and of state
supervision derived from its EPA status; tax revenues endowed to CADES that enjoy
broad and diversified tax bases; adequacy of cash flows.
Challenges (Moody's): Uncertainty with respect to any new transfers of debt in the
long term.
UniCredit Research
page 26
<date>
March 2015
Credit Research
Sector Report SSA
Issuer/ Entity
Credit Ratings
Basel II –
Stand. App.
Ticker/
iBoxx
Caisse Nationale des
Autoroutes
Aa1n/AAn/AAs
20%
CNA
Y
Profile
Overview: CNA is the long-term financing vehicle of France’s toll-road operators.
CNA passes on to these companies the proceeds from its borrowings and receives
reimbursement for the issuing costs on a pro rata basis. The companies also cover
its operating expenses. In return, gains on short-term investments are redistributed to
the companies. As a result, CNA posts a net result of zero every year. CNA's
administration is entrusted to state-owned Caisse des Dépôts et Consignations
(CDC). Its repayment capacity relies on the French toll-road operators. Total assets:
EUR 8.2bn (1H14 company data).
Support: As an EPA, CNA operates within a special legal framework and benefits
Strengths (S&P): Integral link with the central government, given its status as a
public administrative body, which implies strong state monitoring; critical role for
France, despite the transition to an amortization structure from a financing fund,
given that a default would hurt the government's reputation; matching cash inflows
and outflows and no delays in the transfer of funds from concessionaires; high
predictability of stress situations at the concessionaires, owing to government
monitoring and regulation.
Challenges (S&P): No explicit guarantee from the French government for the
company's financial obligations; reliance on concessionaires to service debt; lack of
explicit back-up lines to bridge potential delays in revenue; concessionaires' debt to
the company is not senior to their other obligations; high concentration risk, given that
at year-end 2014 four entities represented 90% of the loans due to the company.
Régie Autonome des
Transports Parisiens
Aa1n/--/AAs
20%
RATPFP
N
Overview: RATP is the Greater Paris transportation authority, operating the city's
subway and buses as well as part of its suburban network (the RER), which links
Paris to its suburban areas. RATP plays a key role in public transportation for the
Greater Paris area along with SNCF. RATP is an EPIC, which means that it is tightly
controlled and monitored by the government. Total assets: EUR 17.9bn (2013
company data).
Support: As an EPIC, RATP operates within a special legal framework and benefits
Strengths (Moody's): Key role in providing public transportation services for the
Greater Paris area; a recent overhaul of RATP's framework tightened the regulatory
environment and clarified its role; improving financial metrics; status as an EPIC,
which ensures the central government's ultimate support.
Challenges (Moody's): The opening of RATP's domestic market to competition will
introduce major changes to the way RATP operates, although any impact before
2024 is unlikely; expected increasing pressure from European authorities to alter its
EPIC status.
SNCF Reseau
Aa1n/AAn/AAs
20%
RESFER
Y
Overview: SNCF Reseau is a 100% state-owned entity. It was created in 1997 as an
EPIC and given full ownership of the French rail infrastructure. Formerly known as
Réseau Ferré de France, it was restructured as a subsidiary of the new holding
company SNCF in early 2015. SNCF Reseau oprates around 30,000 km of railway
lines in 108,000 hectares of land. It is the second-largest railway operator in Europe.
In addition, SNCF Reseau sets the objectives for managing, developing and
maintaining the rail network. This is carried out by SNCF Mobilites, the French stateowned train operating company, on behalf of SNCF Reseau. The entity is financed
through charges paid by rail operators for their network usage and material subsidies
that it receives from the French state, local governments and the EU. The entity has
maintained its EPIC status despite restructuring, which is credit positive. The ticker is
also still RESFER.
Ownership: Wholly owned by SNCF, which is owned by the French government.
Support: As an EPIC, SNCF Reseau operates within a special legal framework and
benefits from strong implicit government support.
Strengths (Moody’s): Very high probability of support from the government of
France and very high dependence between SNCF Reseau and the government; low
business risk given monopoly position.
Challenges (Moody’s): Weak credit metrics, liquidity is dependent on receipt of
subsidies and investment grants, reform of French railway system entails a shift to an
integrated model.
Société Anonyme de
Gestion des Stocks de
Sécurité
UniCredit Research
--/AAn/--
20%
SAGESS
Please refer to the section “Agencies managing strategic petroleum reserves”
N
page 27
<date>
March 2015
Credit Research
Sector Report SSA
Issuer/ Entity
Credit Ratings
Basel II –
Stand. App.
Ticker/
iBoxx
Bpifrance Financement
Aa1n/--/AAs
20%
OSEOFI
Y
Profile
Overview: Bpifrance Financement (formerly OSEO SA) is a subsidiary of EPIC BPIGroupe. EPIC BPI-Groupe and CDC own in equal shareholdings BPI-Group SA (the
financial holding). This financial holding owns directly and indirectly several
subsidiaries under private law, such as: 1. the debt financing division Bpifrance
Financement – a credit institution in charge of the mission of general interest
entrusted to BPI-Group SA and defined by law; 2. an equity investment division
comprising: a) Bpifrance Participations SA – a limited company in charge of equity
investment funds; and b) Bpifrance Investissement SAS – a simplified joint stock
company in charge of the management of investment funds. These subsidiaries –
including BPI-Group SA – make up Bpifrance. Bonds are issued by Bpifrance
Financement, which enjoys a explicit, unconditional and irrevocable guarantee from
EPIC BPI-Groupe.
Ownership: Bpifrance Financenent is owned 10% by commercial banks and 90% by
BPI Groupe SA, which in turn is 50% owned by EPIC BPI-Groupe (100% owned by
the French government) and Caisse des Depots et Consignations (100% owned by
the French government).
Support: With an explicit, unconditional and irrevocable guarantee from an EPIC,
credit risk of Bpifrance Financement can be equated to that of an EPIC. Thus, it
operates within a special legal framework and benefits from strong implicit
government support.
Strengths (Fitch):. Tight state supervision; strong state support; resilient financial
performance; strong, diversified funding; sound liquidity position; diversified risk assets.
Challenges (Fitch): Credit linked to French sovereign risk; potential changes to the
legal status of EPIC.
SNCF Mobilités
Aa2n/AA-n/AAs
20%
SNCF
Y
Overview: SNCF Mobilités is the state-owned rail operator with a monopoly in railpassenger services. With a turnover of EUR 32bn in 2011, SNCF is one of the
biggest transport groups in the world. SNCF is closely supervised by the French
Ministry of Finance and Transportation. It was formerly known as Société Nationale
des Chemnins de Fer Française (SNCF) until it became restructured. SNCF Mobilités
is a subsidiary of the newly created SNCF holidng company and has maintained its
EPIC status despite restructuring. Total assets: EUR 39.8bn (2013 company data).
Ownership Wholly owned by SNCF, which is owned by the French government.
Support: As an EPIC, SNCF Mobilités operates within a special legal framework and
benefits from strong implicit government support.
Strengths (Moody’s): SNCF Mobilités’ exposure to railway competition is limited,
and market opening will be slow; the reform of the French railway system is unlikely
to have a rating impact.
Challenges (Moody’s): Operating performance in 2014 was challenging, the
operating performance of SNCF Voyages’s business unit and SNCF Logistics
(formerly SNCF Geodis business unit) is SNCF Mobilités’ main issue.
UNEDIC
Aa1n/AAn/AAs
0%
UNEDIC
Y
Overview: UNEDIC is a French agency that manages unemployment benefits in
France. It operates two public entities responsible for the collection of contributions
and the payment of benefits. The French government guarantees UNEDIC’s
continuity and sustainability. UNEDIC has a legal obligation to balance its budget.
The agency has an implicit guarantee from the French government because its
services are mandatory. Bonds issued under UNEDIC’s annual funding programs
have had an explicit, irrevocable and unconditional guarantee from the French
government since 2011. Total assets: EUR 8.3bn (2013 company data).
Ownership: Owned and managed in equal measure by social partners (employers'
representatives and labor unions) since 1958.
Support: UNEDIC has benefited from various forms of state support (through direct
guarantees for some of its long-term debt) and subsidies when UNEDIC was in
financial distress. UNEDIC has had an explicit, unconditional and irrevocable
guarantee from the French government for its annual funding programs since 2011.
Strengths (S&P): Central role in defining and managing the French unemployment
insurance scheme, which is part of the government's employment policies; an almost
certain likelihood of extraordinary financial support from the Republic of France, in
our view; explicit government guarantees on all Unedic's bond issues since 2011;
efficient and prudent debt and liquidity management.
Challenges (S&P): Absence of the French government's formal and explicit
responsibility on all Unedic's liabilities; finances hampered by weakened French GDP
growth and increased structural unemployment, leading to large debt accumulation
since 2009.
Individual bonds with a direct government guarantee may be 0% risk weighted.
current Ratings: Moody’s/S&P/Fitch; outlooks: s=stable, p=positive, n=negative, wp=watch positive, wn=watch negative, wd=watch developing
included in iBoxx Sub-Sovereigns: Y=Yes, N=No
UniCredit Research
page 28
<date>
March 2015
Credit Research
Sector Report SSA
Agencies – explicit vs. implicit support
Direct vs. implicit support
In this section, we provide an overview of the different types of agencies that exist in
the European SSA universe. We present our definition of a “real” guarantee and our
definition of an agency. Based on this, we provide two tables: The first table includes
agencies with explicit support from their sovereign, which is either an explicit,
unconditional and irrevocable guarantee from the respective sovereign (the classic examples
are KFW and ICO), or another form of explicit support mechanism which can be considered
equivalent to a sovereign guarantee. The second table includes agencies with an indirect or
implicit form of government support. This differentiation seems to have become increasingly
relevant to investors in recent years, which is reflected in an increasing differentiation of
spreads according to the type of support an agency enjoys. Moreover, the existence of an
explicit guarantee has gained importance for regulatory issues. For example, all agencies with
an explicit, unconditional and irrevocable guarantee will qualify for the highest category,
extremely high quality liquid assets, of the liquidity coverage ratio (LCR).
Definition of a guarantee
A “real” guarantee has to fulfil three criteria: 1. it must be explicit, 2. it must be
irrevocable and 3. it must be unconditional.
1. A guarantee is explicit if it is explained somewhere, for example, in a specific law, in the
bond documentation or in the EMTN program.
2. A guarantee is irrevocable if the guarantee on a bond/issuance program/issuer cannot be
removed, i.e. grandfathering exists for all guaranteed bonds.
3. A guarantee is unconditional if the investor can claim the principal and interest directly
from the guarantor without any conditions attached.
Recently, another feature of a “real” guarantee has become popular: a guarantee at first
demand. With this feature, the guarantor must provide interest/redemption payments
immediately upon the investor’s first request (“at first demand”). To us, this is implied by a
guarantee’s “unconditional” attribute. However, with increasing sensitivity towards the exact
design of guarantee structures, attaching the label “at first demand” to a guarantee seems to
reassure investors.
Definition of an agency
UniCredit Research
In order to qualify as an agency, an entity has to fulfill one or more of the following criteria:
■
It is fully or partly publicly owned, like Bank Nederlandse Gementeen, which is 50%
government-owned.
■
It enjoys an explicit or implicit government guarantee or some other form of support.
This can be a direct, unconditional and irrevocable government guarantee, which is the
case for KFW or ICO, or a support mechanism such as maintenance obligation
("Anstaltslast").
■
It has a public-policy mission, like the French CADES, which assumes current and
future financial obligations from the social security system.
■
It operates under public sector law, e.g. Austrian ASFINAG, which operates under a
specific public ASFINAG law.
page 29
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March 2015
Credit Research
Sector Report SSA
AGENCIES WITH DIRECT SUPPORT (GUARANTEE OR QUASI-GUARANTEE)
Name
Ticker
Rating
Basel II risk w.
Support
Agencies with an explicit, unconditional and irrevocable sovereign guarantee
Autobahnen- und Schnellstrassen Finanzierungs AG
ASFING
Aaas/AA+s/--
0%
Strong explicit and implicit support. EUR 12bn EMTN program has a full
explicit, direct, unconditional and irrevocable government guarantee (Austrian
Budget Law and Railway Act); furthermore, under the ASFINAG law, the
Ministry of Transport is responsible for ensuring that ASFINAG has sufficient
funds at all times to protect its liquidity and equity.
Bayerische
Landesbodenkreditanstalt
BYLABO
--/AAAs/--
0%
Explicit, unconditional and direct guarantee from the State of Bavaria.
Caisse Centrale du Credit
Immobilier de France (3cif)
CCCI
Baa2s/--/As
0%
Bonds issued by 3cif have an explicit, unconditional and irrevocable
guarantee from the French sovereign; as the bonds have a duration of five
years, the gurantee might expire in five years.
Dexia Crédit Locale
DEXGRP
Aa3s/AA/AA
(grandfathered debt)
0%
Under the state guarantee scheme, a guarantee is provided on a several but
not on a joint basis by the governments of Belgium, France and Luxembourg
(51.41%, 45.59% and 3% respectively). The guarantee has a EUR 85bn
ceiling and matures in December 2031.
Finnvera
FINNVE
Aaas/AA+s/--
0%
Explicit, unconditional and irrevocable guarantee from the Republic of Finland.
FMS Wertmanagement
FMSWER
Aaas/AAAs/AAAs
0%
Loss compensation mechanism (Verlustausgleichspflicht), with the main
support provider being the SoFFin, which is owned by FMSA, which itself is
owned by Germany. Thus, Germany is ultimately responsible. Also, FMSWER
received an explicit unconditional and irrevocable guarantee from the
Republic of Germany as of Janaury 2014.This guarantee applies to
forthcoming bond issues as well as outstanding bonds.
Fondo de Amortizacion del
Deficit Electrico
FADE
Baa2/BBB/BBB+s
0%
Explicit, unconditional and irrevocable guarantee from the Kingdom of Spain.
Fondo de Reestructuracion
Ordenada Bancaria
FROB
Baa2p/BBB/BBB+s
0%
Explicit, timely, unconditional and irrevocable guarantee from the Kingdom of
Spain.
HSH Finanzfonds
HSHFF
--/--/AAAs
0%
Maintenance obligation (Anstaltslast), guarantee obligation (Gewährträgerhaftung) and a explicit, unconditional and irrevocable guarantee from the
German state of Schleswig-Holstein and the City of Hamburg.
Instituto de Crédito Oficial
ICO
Baa2p/BBBs/BBB+s
0%
Explicit, irrevocable and unconditional guarantee from the Kingdom of Spain.
Investitionsbank Berlin
IBB
--/--/AAAs
0%
Explicit, irrevocable and unconditional guarantee from the German state of Berlin
and maintenance obligation (Anstaltslast).
KfW Bankengruppe
KFW
Aaas/AAAs/AAAs
0%
Direct, unconditional and irrevocable guarantee from the Federal Republic of
Germany and maintenance obligation (Anstaltslast).
KommuneKredit
KOMMUN Aaas/AAAs/--
0%
Members (98 Danish municipalities and five regions) provide a joint and several
guarantee for all of the institution's obligations.
Kommuninvest
KOMINS
Aaas/AAAs/--
0%
Joint and several guarantees are provided by its members (regional and local
Swedish governments).
Landeskreditbank BadenWürttemberg Förderbank
LBANK
AAAs/AAAs/AAAs
0%
Maintenance obligation (Anstaltslast), guarantee obligation (Gewährträgerhaftung)
and a explicit, unconditional and irrevocable guarantee from the German state
of Baden-Wuerttemberg.
Landwirtschaftliche
Rentenbank
RENTEN
Aaas/AAAs/AAAs
0%
Maintenance obligation (Anstaltslast) from the Federal Republic of Germany. The
agency received an explicit, unconditional and irrevocable guarantee from the
Federal Republic of Germany in January 2014.
LFA Förderbank Bayern
BAYLAN
Aaas/--/--
0%
LFA benefits from a maintenance obligation (Anstaltslast), guarantee
obligation (Gewährträgerhaftung) and an explicit, unconditional and
irrevocable guarantee from the State of Bavaria.
Municipality Finance
KUNTA
Aaas/AA+s/--
0%
Funding guarantee by the Municipal Guarantee Board, whose liabilities are jointly
guaranteed by its Finnish member municipalities, covering 99% of Finland's
population.
NRW.Bank
NRWBK
Aa1s/AA-s/AAAs
0%
Explicit, unconditional and irrevocable guarantee from the German state of
North Rhine-Westphalia, maintenance obligation (Anstaltslast) and guarantee
obligation (Gewährträgerhaftung).
OeBB-Infrastruktur AG
OBND
Aaas/AA+s/--
0%
EMTN program benefits from an explicit, unconditional and irrevocable guarantee
from the Republic of Austria. Austria is responsible for ensuring that OBND
maintains sufficient funds at all times to protect its liquidity and equity and to pursue
certain activities as agreed upon by the company and the government.
Oesterreichische Kontrollbank
OKB
Aaas/AA+s/--
0%
Strong explicit and implicit support by the Austrian government. Unconditional,
timely and irrevocable guarantee for debt obligations issued under the Export
Financing Guarantees Act.
Propertize
PROPBV
Aaas/--/AAAs
0%
Bonds issued under Propertize’s funding program carry an explicit, irrevocable
and unconditional guarantee from the Dutch government.
SID Bank
SEDABI
Baa3s/A-s/--
0%
SID Banka's debt obligations benefit from an explicit, timely, unconditional and
irrevocable guarantee from the Republic of Slovenia.
UniCredit Research
page 30
<date>
March 2015
Credit Research
Sector Report SSA
Name
Ticker
Rating
Basel II risk w.
Support
Agencies with support mechanisms equivalent to a guarantee (quasi-guarantee)
Erdoelbevorratungsverband
EBVGR
--/AAAs/--
0%
By law, EBV cannot be subject to bankruptcy proceedings and, in the event of
liquidation, its debt would be assumed by the federal government.
Erste Abwicklungsanstalt
ERSTAA
Aa1s/AA-s/AAAs
0%
Loss compensation mechanism (Verlustausgleichspflicht), according to
Section 7 of EAA's statute, with the main support provider being the State of
North Rhine-Westphalia.
Caisse d’ Amortissement de la
Dette Sociale
CADES
Aa1n/--/AAs
0%
As an EPA, CADES operates within a special legal framework and benefits
from strong implicit government support. Due to its highly important public
policy mission to amoritize social security debt, government support is
extremely high.
Source: rating agencies, UniCredit Research
UniCredit Research
page 31
<date>
March 2015
Credit Research
Sector Report SSA
AGENCIES WITH IMPLICIT SUPPORT
Name
Ticker
Ratings
Basel II risk
weighting Support
Agence Française de
Développement
AGFRNC
--/AAn/AAs
20%
As an EPIC, AFD operates within a special legal framework and benefits from
strong implicit government support.
Agence France Locale
AFLBNKO
Aa2n/--/--
20%
Explicit joint and several guarantee from its member LRGs. In addition to
members providing a guarantee up to their respective outstanding
borrowings, members have recourse to the other members in case of default
of AFL in order to ensure a joint liability guarantee system.
APETRA
APETRA
--/-- /AAn
20%
Strong implicit support of the Belgian sovereign due to the stratetic mission
and close state supervision and control of APETRA.
Assistance Publique –
Hôpitaux de Paris
APHP
--/AAn/AAs
0%
As an EPS, it benefits from French government support (100% ownership).
Bank Nederlandse
Gemeenten
BNG
Aaan/AA+s/AAAn
20%
Implicit government support is very strong due to the public sector mandate,
importance to the Dutch economy and tight integration with local
governments.
Bundesimmobiliengesellschaft mbH
BUNIMM
Aaas/--/--
20%
Owner support by the Republic of Austria (100% ownership) as the company
is of strategic importance.
German Postal Pension
Securitization
GPPS
Aaa/AAAn/AAAs
20%
GPPS does not enjoy an explicit guarantee but receives solid explicit and
implicit support from the Federal Republic of Germany.
Caisse des Depots et
Consignations
CDCEPS
Aa1n/AAn/AAs
20%
As an Établissement Public, CDC operates within a special legal framework
and benefits from strong implicit government support.
Caisse Nationale des
Autoroutes
CNA
Aa1n/AAn/AAs
20%
As an EPA, CNA operates within a special legal framework and benefits from
strong implicit government support.
Cassa Depositi e
Prestiti S.p.A.
CDEP
Baa2s/BBB-s/BBB+s
50%
CDP enjoys strong government support, is considered an important tool for
public policy and is closely supervised and monitored by the Ministry of
Finance. Most crucially, the guarantee on part of CDP's obligations is de facto
extended to the non-guaranteed part of funding.
Corporación de Reservas
Estratégicas de Productos
Petrolíferos
CORES
Baa3p/BBBs/BBB+s
20%
Its legal status as a quasi-state entity embedded within a rigid legal framework
ensures strong state support, albeit not explicit state support.
m.b.H.
ERDLAG
--/AA+s/--
20%
Strong implicit support from the Austrian sovereign due to the stratetic
mission and close state supervision and control.
Kommunalbanken
KBN
Aaas/AAAs/--
20%
Kommunalbanken enjoys very strong implicit support from the Kingdom of
Norway, which is based on a strong letter of support.
Nederlandse
Waterschapsbank
NEDWBK
Aaan/AA+s/--
20%
Implicit government support is very strong due to the public sector mandate,
importance to the Dutch economy and tight integration with local governments.
Régie Autonome des
Transports Parisiens
RATPFP
Aa1n/--/AAs
20%
As an EPIC, RATP operates within a special legal framework and benefits
from strong implicit government support.*
SNCF Reseau
RESFER
Aa1n/AAn/AAs
20%
As an EPIC, SNCF Reseau operates within a special legal framework and
benefits from strong implicit government support.*
Societe Anonyme de Gestion SAGESS
des Stocks de Securite
--/AAn/--
20%
Strong implicit support of the French sovereign due to the stratetic mission
and close state supervision and control of SAGESS.
SNCF Mobilités
SNCF
Aa2n/AA-n/AAs
20%
As an EPIC, SNCF Mobilités operates within a special legal framework and
benefits from strong implicit government support. No change to this special
status is expected as a result of the restructuring of the French railway sector.*
Swedish Export Credit Corp
SEK
Aa1s/AA+s/--
20%
Government support is deemed highly likely due to its ownership
(100% ownership).
SBAB
SBAB
A2n/An/--
20%
The Swedish government provides a commitment of support. This is
demonstrated by 1. the explicit support by the government through a feebased subordinated credit facility and 2. an ownership clause for EMTN
bondholders, which grants the right to early redemption should government
ownership drop below 51%.
*For an explanation of this status, please refer to the section "French EPIC/EPA".
UniCredit Research
page 32
Source: rating agencies, UniCredit Research
<date>
March 2015
Credit Research
Sector Report SSA
Disclaimer
Our recommendations are based on information obtained from, or are based upon public information sources that we consider to be reliable but for the completeness and accuracy of
which we assume no liability. All estimates and opinions included in the report represent the independent judgment of the analysts as of the date of the issue. We reserve the
right to modify the views expressed herein at any time without notice. Moreover, we reserve the right not to update this information or to discontinue it altogether without notice.
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Furthermore, past performance is not necessarily indicative of future results. In particular, the risks associated with an investment in the financial, money market or investment
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Responsibility for the content of this publication lies with:
a) UniCredit Bank AG (UniCredit Bank), Am Tucherpark 16, 80538 Munich, Germany, (also responsible for the distribution pursuant to §34b WpHG). The company belongs to
UniCredit Group. Regulatory authority: “BaFin“ – Bundesanstalt für Finanzdienstleistungsaufsicht, Lurgiallee 12, 60439 Frankfurt, Germany.
b) UniCredit Bank AG London Branch (UniCredit Bank London), Moor House, 120 London Wall, London EC2Y 5ET, United Kingdom.
Regulatory authority: “BaFin“ – Bundesanstalt für Finanzdienstleistungsaufsicht, Lurgiallee 12, 60439 Frankfurt, Germany and subject to limited regulation by the Financial
Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS, United Kingdom and Prudential Regulation Authority 20 Moorgate, London, EC2R 6DA, United Kingdom.
Further details regarding our regulatory status are available on request.
c) UniCredit Bank AG Hong Kong Branch (UniCredit Bank Hong Kong), 25/F Man Yee Building, 68 Des Voeux Road Central, Hong Kong.
Regulatory authority: Hong Kong Monetary Authority, 55th Floor, Two International Financial Centre, 8 Finance Street, Central, Hong Kong
d) UniCredit Bank AG Singapore Branch (UniCredit Bank Singapore), Prudential Tower, 30 Cecil Street, #25-01, Singapore 049712
Regulatory authority: Monetary Authority of Singapore, 10 Shenton Way MAS Building, Singapore 079117
e) UniCredit Bank AG Tokyo Branch (UniCredit Tokyo), Otemachi 1st Square East Tower 18/F, 1-5-1 Otemachi, Chiyoda-ku, 100-0004 Tokyo, Japan
Regulatory authority: Financial Services Agency, The Japanese Government, 3-2-1 Kasumigaseki Chiyoda-ku Tokyo, 100-8967 Japan, The Central Common Government
Offices No. 7.
POTENTIAL CONFLICTS OF INTERESTS
3CIF 4; ASFINAG 4; Bank Nederlandse Gemeenten NV 4; Bayerische Landesbodenkreditanstalt 4; CADES 4; CORES 4; Erste Abwicklungsanstalt 3, 4; FROB 4; ICO 4;
Investitionsbank Berlin 4; Kommunekredit 4; Kreditanstalt für Wiederaufbau 3, 4; L-Bank Landeskreditbank Baden-Württemberg 4; Landwirtschaftliche Rentenbank 3, 4; LFA
Foerderbank Bayern 7; Nederlandse Waterschapsbank 4; NRW.BANK 4; ÖBB Infrastruktur Bau AG 4; Österreichische Kontrollbank 1a, 4, 6a; SBAB 4; SFEF 4
Key 1a: UniCredit Bank AG and/or a company affiliated with it (pursuant to relevant domestic law) owns at least 2% of the capital stock of the company.
Key 1b: The analyzed company owns at least 2% of the capital stock of UniCredit Bank AG and/or a company affiliated with it (pursuant to relevant domestic law).
Key 2: UniCredit Bank AG and/or a company affiliated with it (pursuant to relevant domestic law) belonged to a syndicate that has acquired securities or any related derivatives of the
analyzed company within the twelve months preceding publication, in connection with any publicly disclosed offer of securities of the analyzed company, or in any related derivatives.
Key 3: UniCredit Bank AG and/or a company affiliated (pursuant to relevant domestic law) administers the securities issued by the analyzed company on the stock exchange or on the
market by quoting bid and ask prices (i.e. acts as a market maker or liquidity provider in the securities of the analyzed company or in any related derivatives).
Key 4: The analyzed company and UniCredit Bank AG and/or a company affiliated (pursuant to relevant domestic law) concluded an agreement on services in connection with
investment banking transactions in the last 12 months, in return for which the Bank received a consideration or promise of consideration.
Key 5: The analyzed company and UniCredit Bank AG and/or a company affiliated (pursuant to relevant domestic law) have concluded an agreement on the preparation of analyses.
Key 6a: Employees of UniCredit Bank AG Milan Branch and/or members of the Board of Directors of UniCredit (pursuant to relevant domestic law) are members of the Board of
Directors of the Issuer. Members of the Board of Directors of the Issuer hold office in the Board of Directors of UniCredit (pursuant to relevant domestic law).
Key 6b: The analyst is on the supervisory/management board of the company they cover.
Key 7: UniCredit Bank AG Milan Branch and/or other Italian banks belonging to the UniCredit Group (pursuant to relevant domestic law) extended significant amounts of credit
facilities to the Issuer.
RECOMMENDATIONS, RATINGS AND EVALUATION METHODOLOGY
Company
Date
Rec.
Company
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Date
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Rec.
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Overview of our ratings
You will find the history of rating regarding recommendation changes as well as an overview of the breakdown in absolute and relative terms of our investment ratings on our website
http://www.disclaimer.unicreditmib.eu/credit-research-rd/Recommendations_CR_e.pdf.
Note on the evaluation basis for interest-bearing securities:
Recommendations relative to an index:
For high grade names the recommendations are relative to the "iBoxx EUR Benchmark" index family, for sub investment grade names the recommendations are relative to the
"iBoxx EUR High Yield" index family.
Marketweight: We recommend having the same portfolio exposure in the name as the respective iBoxx index. We expect that the average total return of the instruments of the
issuer is equal to the total return of the index.
Overweight: We recommend having a higher portfolio exposure in the name as the respective iBoxx index. We expect that the average total return of the instruments of the
issuer is greater than the total return of the index.
Underweight: We recommend having a lower portfolio exposure in the name as the respective iBoxx index. We expect that the average total return of the instruments of the
issuer is less than the total return of the index.
Outright recommendations:
Hold: We recommend holding the respective instrument for investors who already have exposure. We expect that the total return of the instruments of the issuer is equal to the yield.
Buy: We recommend buying the respective instrument for investors who already have exposure. We expect that the total return of the instruments of the issuer is greater than the yield.
Sell: We recommend selling the respective instrument for investors who already have exposure. We expect that the total return of the instruments of the issuer is less than the yield.
We employ three further categorizations for interest-bearing securities in our coverage:
Restricted: A recommendation and/or financial forecast is not disclosed owing to compliance or other regulatory considerations such as a blackout period or a conflict of interest.
UniCredit Research
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March 2015
Credit Research
Sector Report SSA
Coverage in transition: Due to changes in the research team, the disclosure of a recommendation and/or financial information are temporarily suspended. The interest-bearing
security remains in the research universe and disclosures of relevant information will be resumed in due course.
Not rated: Suspension of coverage.
Trading recommendations for fixed-interest securities mostly focus on the credit spread (yield difference between the fixed-interest security and the relevant government bond or
swap rate) and on the rating views and methodologies of recognized agencies (S&P, Moody’s, Fitch). Depending on the type of investor, investment ratings may refer to a short
period or to a 6 to 9-month horizon. Please note that the provision of securities services may be subject to restrictions in certain jurisdictions. You are required to acquaint
yourself with local laws and restrictions on the usage and the availability of any services described herein. The information is not intended for distribution to or use by any person
or entity in any jurisdiction where such distribution would be contrary to the applicable law or provisions.
Coverage Policy
A list of the companies covered by UniCredit Bank is available upon request.
Frequency of reports and updates
It is intended that each of these companies be covered at least once a year, in the event of key operations and/or changes in the recommendation.
SIGNIFICANT FINANCIAL INTEREST:
UniCredit Bank and/or a company affiliated (pursuant to relevant national law) with them regularly trade shares of the analyzed company. UniCredit Bank and/or a company
affiliated may hold significant open derivative positions on the stocks of the company which are not delta-neutral.
Analyses may refer to one or several companies and to the securities issued by them. In some cases, the analyzed issuers have actively supplied information for this analysis.
ANALYST DECLARATION
The author’s remuneration has not been, and will not be, geared to the recommendations or views expressed in this study, neither directly nor indirectly.
ORGANIZATIONAL AND ADMINISTRATIVE ARRANGEMENTS TO AVOID AND PREVENT CONFLICTS OF INTEREST
To prevent or remedy conflicts of interest, UniCredit Bank has established the organizational arrangements required from a legal and supervisory aspect, adherence to which is
monitored by its compliance department. Conflicts of interest arising are managed by legal and physical and non-physical barriers (collectively referred to as “Chinese Walls”) designed
to restrict the flow of information between one area/department of UniCredit Bank and another. In particular, Investment Banking units, including corporate finance, capital market
activities, financial advisory and other capital raising activities, are segregated by physical and non-physical boundaries from Markets Units, as well as the research department.
Disclosure of publicly available conflicts of interest and other material interests is made in the research. Analysts are supervised and managed on a day-to-day basis by line managers
who do not have responsibility for Investment Banking activities, including corporate finance activities, or other activities other than the sale of securities to clients.
ADDITIONAL REQUIRED DISCLOSURES UNDER THE LAWS AND REGULATIONS OF JURISDICTIONS INDICATED
Notice to Australian investors
This publication is intended for wholesale clients in Australia subject to the following: UniCredit Bank AG and its branches do not hold an Australian Financial Services licence but are
exempt from the requirement to hold an Australian financial services licence in respect of the financial services UniCredit Bank AG and its branches provide to wholesale clients.
UniCredit Bank AG and its branches are regulated by BaFin under German laws, which differ from Australian laws. This document is only for distribution to wholesale clients as defined
in Section 761G of the Corporations Act. UniCredit Bank AG and its branches are not Authorised Deposit Taking Institutions under the Banking Act 1959 and are not authorised to
conduct a banking business in Australia.
Notice to Austrian investors
This document does not constitute or form part of any offer for sale or subscription of or solicitation of any offer to buy or subscribe for any securities and neither this document
nor any part of it shall form the basis of, or be relied on in connection with or act as an inducement to enter into, any contract or commitment whatsoever.
This document is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on to any other person or published, in
whole or part, for any purpose.
Notice to Czech investors
This report is intended for clients of UniCredit in the Czech Republic and may not be used or relied upon by any other person for any purpose.
Notice to Hong Kong investors
The information in this publication is intended for recipient(s) who is/are Professional Investor as defined in Section 1 of Part 1 of Schedule 1 to the Securities and Futures
Ordinance (Cap. 571). The information in this publication is based on carefully selected sources believed to be reliable, however we do not make any representation as to the
accuracy or completeness of the information. Any opinions herein reflect our judgement at the date hereof and are subject to change without notice. Any investments presented
in this publication may be unsuitable for the investor depending on his or her specific investment objectives and financial position. Any reports provided herein are provided for
general information purposes only and cannot substitute the obtaining of independent financial advice. Private investors should obtain the advice of their banker/broker about any
investments concerned prior to making them. Nothing in this publication is intended to create contractual obligations.
Notice to Italian investors
This document is not for distribution to retail clients as defined in article 26, paragraph 1(e) of Regulation n. 16190 approved by CONSOB on 29 October 2007. In the case of a
short note, we invite the investors to read the related company report that can be found on UniCredit Research website www.research.unicredit.eu.
Notice to Japanese investors
This document does not constitute or form part of any offer for sale or subscription for or solicitation of any offer to buy or subscribe for any securities and neither this document
nor any part of it shall form the basis of, or be relied on in connection with or act as an inducement to enter into, any contract or commitment whatsoever.
Notice to Polish investors
This document is intended solely for professional clients as defined in Art. 3 39b of the Trading in Financial Instruments Act of 29 July 2005. The publisher and distributor of the
recommendation certifies that it has acted with due care and diligence in preparing the recommendation, however, assumes no liability for its completeness and accuracy.
Notice to Russian investors
As far as we are aware, not all of the financial instruments referred to in this analysis have been registered under the federal law of the Russian Federation "On the Securities
Market" dated 22 April 1996, as amended (the "Law"), and are not being offered, sold, delivered or advertised in the Russian Federation. This analysis is intended for qualified
investors, as defined by the Law, and shall not be distributed or disseminated to a general public and to any person, who is not a qualified investor.
Notice to Singapore investors
The information in this publication is intended solely for Institutional and Accredited investors only, as defined in section 4A of the Securities and Futures Act (Cap. 289) of
Singapore (“SFA”) and is not intended to be made available to the retail public. We have taken reasonable steps to select information based on sources believed to be reliable.
However we do not make any representation as to its accuracy or completeness. This publication is distributed for information only and is not a prospectus as defined in the SFA.
It is not and should not be construed as an offer to sell or a solicitation of an offer to buy any security or investment product. It is also not and should not be construed as
providing advice regarding any security, investment or product. Any opinions herein reflect our judgement at the date hereof and are subject to change without notice. Such
opinions do not take into consideration the investment objectives, financial situation, risk appetite of any other characteristics and particular needs of an investor. You should
consult your advisers concerning any potential transactions and consider carefully whether the security, investment or product is suitable for you before making any investment
decision. Any reports provided herein are provided for general information purposes only. Any information regarding past performances of the investment may not be indicative of
future performances and cannot substitute the obtaining of independent financial advice.
Notice to Turkish investors
Investment information, comments and recommendations stated herein are not within the scope of investment advisory activities. Investment advisory services are provided in accordance
with a contract of engagement on investment advisory services concluded with brokerage houses, portfolio management companies, non-deposit banks and the clients. Comments and
recommendations stated herein rely on the individual opinions of the ones providing these comments and recommendations. These opinions may not suit your financial status, risk and
return preferences. For this reason, to make an investment decision by relying solely on the information stated here may not result in consequences that meet your expectations.
Notice to UK investors
This communication is directed only at clients of UniCredit Bank who (i) have professional experience in matters relating to investments or (ii) are persons falling within Article
49(2)(a) to (d) (“high net worth companies, unincorporated associations, etc.”) of the United Kingdom Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
or (iii) to whom it may otherwise lawfully be communicated (all such persons together being referred to as “relevant persons”). This communication must not be acted on or relied
on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged
in only with relevant persons.
Notice to U.S. investors
UniCredit Research
page 34
<date>
March 2015
Credit Research
Sector Report SSA
This report is being furnished to U.S. recipients in reliance on Rule 15a-6 ("Rule 15a-6") under the U.S. Securities Exchange Act of 1934, as amended. Each U.S. recipient of this
report represents and agrees, by virtue of its acceptance thereof, that it is such a "major U.S. institutional investor" (as such term is defined in Rule 15a-6) and that it understands
the risks involved in executing transactions in such securities. Any U.S. recipient of this report that wishes to discuss or receive additional information regarding any security or
issuer mentioned herein, or engage in any transaction to purchase or sell or solicit or offer the purchase or sale of such securities, should contact a registered representative of
UniCredit Capital Markets, LLC.
Any transaction by U.S. persons (other than a registered U.S. broker-dealer or bank acting in a broker-dealer capacity) must be effected with or through UniCredit Capital Markets.
The securities referred to in this report may not be registered under the U.S. Securities Act of 1933, as amended, and the issuer of such securities may not be subject to U.S.
reporting and/or other requirements. Available information regarding the issuers of such securities may be limited, and such issuers may not be subject to the same auditing and
reporting standards as U.S. issuers.
The information contained in this report is intended solely for certain "major U.S. institutional investors" and may not be used or relied upon by any other person for any purpose.
Such information is provided for informational purposes only and does not constitute a solicitation to buy or an offer to sell any securities under the Securities Act of 1933, as
amended, or under any other U.S. federal or state securities laws, rules or regulations. The investment opportunities discussed in this report may be unsuitable for certain
investors depending on their specific investment objectives, risk tolerance and financial position. In jurisdictions where UniCredit Capital Markets is not registered or licensed to
trade in securities, commodities or other financial products, transactions may be executed only in accordance with applicable law and legislation, which may vary from jurisdiction
to jurisdiction and which may require that a transaction be made in accordance with applicable exemptions from registration or licensing requirements.
The information in this publication is based on carefully selected sources believed to be reliable, but UniCredit Capital Markets does not make any representation with respect to
its completeness or accuracy. All opinions expressed herein reflect the author’s judgment at the original time of publication, without regard to the date on which you may receive
such information, and are subject to change without notice.
UniCredit Capital Markets may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. These
publications reflect the different assumptions, views and analytical methods of the analysts who prepared them. Past performance should not be taken as an indication or
guarantee of future performance, and no representation or warranty, express or implied, is provided in relation to future performance.
UniCredit Capital Markets and any company affiliated with it may, with respect to any securities discussed herein: (a) take a long or short position and buy or sell such securities;
(b) act as investment and/or commercial bankers for issuers of such securities; (c) act as market makers for such securities; (d) serve on the board of any issuer of such
securities; and (e) act as paid consultant or advisor to any issuer.
The information contained herein may include forward-looking statements within the meaning of U.S. federal securities laws that are subject to risks and uncertainties. Factors that
could cause a company’s actual results and financial condition to differ from expectations include, without limitation: political uncertainty, changes in general economic conditions that
adversely affect the level of demand for the company’s products or services, changes in foreign exchange markets, changes in international and domestic financial markets and in the
competitive environment, and other factors relating to the foregoing. All forward-looking statements contained in this report are qualified in their entirety by this cautionary statement
This document may not be distributed in Canada.
CR e 3
UniCredit Research
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March 2015
Credit Research
Sector Report SSA
UniCredit Research*
Michael Baptista
Global Head of CIB Research
+44 207 826-1328
[email protected]
Dr. Ingo Heimig
Head of Research Operations
+49 89 378-13952
[email protected]
Credit Research
Luis Maglanoc, CFA, Head
+49 89 378-12708
[email protected]
Credit Strategy & Structured
Credit Research
Dr. Philip Gisdakis, Head
Credit Strategy
+49 89 378-13228
[email protected]
Dr. Christian Weber, CFA, Deputy Head
Credit Strategy
+49 89 378-12250
[email protected]
Dr. Tim Brunne
Quantitative Credit Strategy
+49 89 378-13521
[email protected]
Holger Kapitza
Credit Strategy & Structured Credit
+49 89 378-28745
[email protected]
Dr. Stefan Kolek
EEMEA Corporate Credits & Strategy
+49 89 378-12495
[email protected]
Manuel Trojovsky
Credit Strategy & Structured Credit
+49 89 378-14145
[email protected]
Financials Credit Research
Corporate Credit Research
Franz Rudolf, CEFA, Head
Covered Bonds
+49 89 378-12449
[email protected]
Stephan Haber, CFA, Co-Head
Telecoms, Technology
+49 89 378-15192
[email protected]
Valentina Stadler, Deputy Head
Sub-Sovereigns & Agencies
+49 89 378-16296
[email protected]
Dr. Sven Kreitmair, CFA, Co-Head
Automotive & Mobility
+49 89 378-13246
[email protected]
Florian Hillenbrand, CFA
Covered Bonds
+49 89 378-12961
[email protected]
Jana Arndt, CFA
Basic Resources, Industrial G&S,
Construction & Materials
+49 89 378-13211
[email protected]
Dr. Tilo Höpker
Banks
+49 89 378-12960
[email protected]
Luis Maglanoc, CFA
Regulatory & Accounting Service
+49 89 378-12708
[email protected]
Natalie Tehrani Monfared
Regulatory & Accounting Service
+49 89 378-12242
[email protected]
Emanuel Teuber
Banks, Financial Services, Insurance
+49 89 378-14245
[email protected]
Robert Vielhaber
Sub-Sovereigns & Agencies
+49 89 378-12004
[email protected]
Dr. Claudia Vortmüller
Banks
+49 89 378-12429
[email protected]
Christian Aust, CFA
Chemicals, Industrial Transportation, Paper & Packaging
+49 89 378-12806
[email protected]
Mehmet Dere
Retail, Travel & Leisure, Oil & Gas
+49 89 378-11294
[email protected]
Olga Fedotova
Russia/CIS
(Banks, Oil & Gas, Basic Resources, Telecoms)
+44 207 826-1376
[email protected]
Michael Gerstner
Utilities, Hybrids
+49 89 378-15449
[email protected]
Alexander Rozhetskin
Russia/CIS
(Banks, Oil & Gas, Basic Resources, Telecoms)
+44 207 826-7953
[email protected]
Jonathan Schroer, CFA
Media/Cable, Logistics, Business Services
+49 89 378-13212
[email protected]
Dr. Silke Stegemann, CEFA
Health Care & Pharma, Food & Beverage,
Personal & Household Goods
+49 89 378-18202
[email protected]
Publication Address
UniCredit Research
Corporate & Investment Banking
UniCredit Bank AG
Arabellastrasse 12
D-81925 Munich
[email protected]
Bloomberg
UCCR
Internet
www.research.unicredit.eu
*UniCredit Research is the joint research department of UniCredit Bank AG (UniCredit Bank), UniCredit Bank AG London Branch (UniCredit Bank London), UniCredit Bank AG Milan Branch (UniCredit Bank Milan),
UniCredit Bank New York (UniCredit Bank NY), UniCredit Bulbank, Zagrebačka banka d.d., UniCredit Bank Czech Republic and Slovakia, Bank Pekao, ZAO UniCredit Bank Russia (UniCredit Russia),
UniCredit Tiriac Bank (UniCredit Tiriac).
CR 12
UniCredit Research
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Sector Report - UniCredit Research

Transcription

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