Standard & Poor’s removed its BBB rating of Depfa Bank plc and core subsidiaries from CreditWatch negative (CWN) and left it on positive outlook yesterday (Monday) because of the decision taken last week to wind down rather than sell the Depfa group.

Depfa Bank ownership will be transferred to FMS Wertmanagement (FMSW) and its assets wound down under a decision agreed by the German government and hitherto parent Hypo Real Estate group, removing the potential for a sale of the group.

“We therefore no longer believe that the reprivatisation of the bank is likely,” said the rating agency.

“The positive outlook reflects our expectation that the completion of the transaction will remove uncertainties about Depfa’s future and increase the likelihood that the German government, through FMSW, will support the orderly wind-down of Depfa,” it added.

Core Depfa subsidiaries Depfa ACS Bank, Hypo Pfandbrief Bank International and Hypo Public Finance Bank were also removed from CWN and put on stable outlook.