(The following statement was released by the rating agency)

Jan 30 - Fitch Ratings has assigned COREALCREDIT BANK AG's (COREALCREDIT) eight-year EUR6.6m multi callable notes (ISIN: XS0880057087), due 28 January 2021, a final Long-Term rating of 'BBB-'.

RATING ACTION RATIONALE

The assignment of the final senior unsecured instrument rating follows the completion of the issuance and receipt of documents conforming to the information previously received. The final instrument rating is consistent with COREALCREDIT's Long-term Issuer Default Rating (IDR) of 'BBB-'. The Outlook on the Long-Term IDR is Stable. COREALCREDIT has a Support Rating of '2' and Support Rating Floor of 'BBB-'.

The fixed-rate notes have been issued under COREALCREDIT's EUR5bn debt issuance programme (not rated) and represent unsubordinated obligations of the issuer.

RATING DRIVERS AND SENSITIVITIES - SENIOR DEBT

The Long-Term IDR reflects Fitch's view that COREALCREDIT's active Pfandbrief issuer status results in a high probability of support from the German public authorities. Although Fitch does not consider COREALCREDIT to be a systemically important bank, it believes that support would be forthcoming to safeguard the standing of Pfandbriefe as an asset class and, by extension, of their issuers.

The Stable Outlook reflects Fitch's view that the probability of support for Pfandbrief issuers is likely to remain strong in the short to medium term under most reasonable scenarios.

Fitch's ratings do not factor in any potential support from the bank's owner, Lone Star Fund LSF5 German Investments, L.P., a special purpose vehicle managed by a private equity investor, Lone Star, into its ratings.

The bank's IDRs, Support Rating and SRF are sensitive to developments within the regulatory and legal framework, either in Germany or at a pan-European level. Any changes in the agency's view of support would result in downgrades of the bank's IDRs, Support Rating and SRF. These ratings are also sensitive to any change in Fitch's view of the ability of the German authorities to provide support, which would be signalled by a downgrade of the sovereign rating.

(Bangalore Ratings Team, Hotline: +91 80 4135 5898 Debanjali.Ghosh@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: Debanjali.Ghosh.reuters.com@reuters.net)

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