On principle, Berlin Hyp conducts money market transactions for the purpose of liquidity management with its parent company, Landesbank Berlin AG (LBB). Accordingly, the supplementary Pfandbrief coverage (substitution cover) is also deposited with this institution. It is to be expected that Landesbank Berlin AG, integrated in the Joint Liability Scheme of the Sparkassen-Finanzgruppe (institutional guarantee) will continue to receive good ratings from the rating agencies (lastly: Moody's A1/P-1; Fitch: A+/F1+).
However, should LBB’s Fitch short-term rating fall below F1+, Berlin Hyp will deposit the requisite disposable funds for the purpose of Pfandbrief coverage with other, suitable credit institutions within 30 days.