Raiffeisenbank Horgau eG

The ratings on Raiffeisenbank Horgau eG are based on its strong integration into the cooperative banking sector in Germany, which Standard & Poor's Ratings Services views analytically as a coherent economic group despite being legally independent institutions. Therefore, the ratings reflect the aggregate financial strength of the entire sector, which consists of about 1,300 local banks, two central banks, and several strategic product providers. This view also takes into account the bank's membership in the sector's system of solidarity and comprehensive protective scheme, which has prevented insolvencies of member institutions for 70 years. The ratings are supported by the sector's combined strong market position and franchise in the domestic retail banking market; its stable funding sources; and overall sound capitalization. The ratings are further underpinned by the ongoing progress of sector institutions nationwide in achieving sustainable improvements in profitability, asset quality, and capitalization since 2003. The ratings are constrained by the slow, albeit improving, ability of local cooperative banks in Germany to realize cost synergies from the ongoing consolidation process, and by still elevated, although significantly reduced, loan loss provisions of sector banks. Raiffeisenbank Horgau eG is a member of the cooperative banking sector's protective scheme, which is organized purely at the national level. This is complemented by a risk monitoring system, run by the Federal Association of Cooperative Banks (Bundesverband der Deutschen Volksbanken und Raiffeisenbanken), which should ensure that potential problems at member banks are detected at an early stage. While the cooperative banks in Germany are independent institutions, integration and coherence is underpinned by their joint legal form as cooperative institutions; largely harmonized branding; regulation to minimize intragroup competition; the use of products and services provided by the sector's strategic central product providers; and joint information technology.

Address: Hauptstr 17, 86497 Horgau, Germany

Phone: +49 8294 2894
FAX: +49 8294 1002