The upcoming marriage of German banks Eurohypo AG and Rheinhyp AG has triggered a series of credit watch actions. As October came to a close, Standard & Poor's announced that it would place the banks' respective senior secured Pfandbriefe notes on watch with negative implications pending finalized details of the merger.

Both the triple-A tranches of Eurohypo AG's and Rheinhyp AG's senior- secured public sector (ffentliche) Pfandbriefe and Eurohypo's senior-secured mortgage (Hypotheken-) Pfandbriefe are threatened. Now the ratings group is turning its attention to the banks' securitization assets and announced last week that the triple-A ratings for Eurohypo 2000-1, Eurohypo 2001-1, Europa One Ltd., Europa Two Ltd., Globe-R-2000-1, CAST 1999-1, and CAST 2000-1 would be the next to join the credit watch list.

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