Moody's Rates KfW Promise Deal

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Moody's Investors Service said today  that it will rate  the senior swap and the class A+ Notes totalling $943million equivalent, issued by the German state sponsored bank, Kreditanstalt für Wiederaufbau (KfW) under the Promise Neo  2012- 1 transaction.


The  ratings agency will rate the deal's, EUR721.77mn, senior swap; and  the EUR0.1mn, class A+ certificate, both 'Aaa'.

Promise Neo 2012- 1 is a partially funded synthetic securitization in  which HSH Nordbank AG  buys credit protection on a portfolio of secured and unsecured loans granted by itself to small and medium-sized enterprises (SME) based in Germany.

Through the synthetic transaction, HSH's will obtain credit protection on its SME  loan book, which allows the bank to add the reference claims plus the attached  guarantee claims against KfW into the cover pool of its public sector covered bond, according to Moody's presale report published today.  

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