NordLB has obtained a second rating for its public sector Pfandbriefe, AAA from Fitch. The German Landesbank already has a top rating from Moody’s.

A spokesperson at the issuer told The Covered Bond Report that it obtained the second rating to help boost its international reach.

Fitch assigned the rating yesterday (Monday), saying that it is based on the issuer’s long term default rating of A and a Discontinuity Factor (D-Factor) of 8.2%. This allows NordLB’s public sector Pfandbriefe to be rated up to AAA on a probability of default basis, provided that overcollateralisation is sufficient to sustain a AAA stress level.

All else remaining equal, a D-Factor of 8.2% means that the Pfandbriefe can remain rated AAA provided the issuer is rated at least BBB.

Around 64% of NordLB’s public sector cover pool is directly exposed to or guaranteed by the German sovereign and federal states.

Moody’s rates NordLB’s public sector Pfandbriefe Aaa. Moody’s on 1 July placed the issuer’s senior debt rating (Aa2) on review for downgrade alongside those of 10 other public sector banks.