FINANCIAL INSTITUTIONS

CREDIT OPINION17 August 2018

Update

RATINGS

Bayerische LandesbankDomicile Germany

Long Term CRR Aa3

Type LT Counterparty RiskRating - Fgn Curr

Outlook Not Assigned

Long Term Debt Aa3

Type Senior Unsecured -Dom Curr

Outlook Stable

Long Term Deposit Aa3

Type LT Bank Deposits - FgnCurr

Outlook Stable

Please see the ratings section at the end of this reportfor more information. The ratings and outlook shownreflect information as of the publication date.

Contacts

Katharina Barten +49.69.7073.0765Senior Vice Presidentkatharina.barten@moodys.com

Alexander Hendricks,CFA

+49.69.7073.0779

Associate Managing Directoralexander.hendricks@moodys.com

Carola Schuler +49.69.7073.0766MD-Bankingcarola.schuler@moodys.com

CLIENT SERVICES

Americas 1-212-553-1653

Asia Pacific 852-3551-3077

Japan 81-3-5408-4100

EMEA 44-20-7772-5454

Bayerische LandesbankUpdate following legislative change in Germany

SummaryOn 3 August 2018, we reclassified as junior senior unsecured the senior debt instrumentsof Bayerische Landesbank (BayernLB) and downgraded them to A2 from A1 negative. Atthe same time, we reclassified complex structured debt instruments as senior unsecuredand affirmed their ratings at Aa3 stable. As a result, we upgraded the bank's issuer andsenior unsecured program ratings to Aa3 stable and (P)Aa3 from A1 negative and (P)A1,respectively. We also affirmed the bank's Aa3 stable/P-1 deposit ratings. We continueto assign a Baseline Credit Assessment (BCA) of baa3, an Adjusted BCA of baa1 andCounterparty Risk Ratings (CRRs) of Aa3/P-1.

BayernLB's ratings reflect (1) its baa3 BCA; (2) its baa1 Adjusted BCA, incorporating ourassessment of a high probability of affiliate support from Sparkassen-Finanzgruppe (S-Finanzgruppe, Aa2 stable, a2)1, which results in two notches of rating uplift; (3) the resultof our Advanced Loss Given Failure (LGF) analysis, which provides three notches of ratinguplift to the bank's senior unsecured debt and deposit ratings; and (4) our assumption of amoderate probability of government support for the bank's deposit and senior unsecureddebt ratings, equivalent to one additional notch of rating uplift.

BayernLB's baa3 BCA reflects the bank's healthy asset quality and its sound capital ratios.At the same time, its BCA is constrained by the bank's low profitability and wholesale-dependent funding profile.

Exhibit 1

Rating Scorecard - Key financial ratios

3.1%

16.8%0.3%

44.1% 32.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Asset Risk:Problem Loans/

Gross Loans

Capital:Tangible Common

Equity/Risk-WeightedAssets

Profitability:Net Income/

Tangible Assets

Funding Structure:Market Funds/

Tangible BankingAssets

Liquid Resources:Liquid Banking

Assets/TangibleBanking Assets

Solvency Factors (LHS) Liquidity Factors (RHS)

BayernLB (BCA: baa3) Median baa3-rated banks

So

lve

ncy F

acto

rs

Liq

uid

ity F

acto

rs

Source: Moody's Financial Metrics

MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS

Credit strengths

» Sound asset quality and low tail risks from noncore exposures

» Sound capitalisation

» Adequate liquidity to balance high market-funding dependence

Credit challenges

» High sector concentrations related to commercial real estate and utilities

» Profitability challenged by low interest rates and cost pressures

» High wholesale funding dependence

» Legal risk related to a legacy dispute over amounts due from Heta Asset Resolution AG (Heta, Aa1)2

OutlookThe outlook is stable and reflects our expectation that, despite continued strain on profitability, the bank will be able to at least sustainits improved solvency over the next 12-18 months, supported by a benign domestic credit environment. While mildly stronger metricscould translate into a higher BCA in the next 12-18 months, the stable outlook reflects that a single-notch upgrade to the BCA wouldnot translate into a higher Adjusted BCA and, therefore, not result in upgrades to the bank's debt and deposit ratings.

Factors that could lead to an upgrade

» An upgrade of BayernLB's ratings could be triggered by a two-notch uplift to the bank's BCA, which would be needed to triggerupward pressure on the bank's baa1 Adjusted BCA, based on our high sector support assumptions.

» A BCA upgrade by more than one notch would be subject to a combination of (1) a reduction in market funds relative to totalassets; (2) an increase in liquid resources; (3) higher capital ratios combined with improvements in balance-sheet leverage; and (4)strengthening recurring earnings.

» In addition, junior senior unsecured debt and subordinated instrument ratings could be upgraded because of lower loss given failure,for example, if subordination were to increase, although this seems unlikely at present. The potential for a higher LGF result doesnot apply to BayernLB's senior unsecured debt and deposit ratings because with three notches of rating uplift from the AdjustedBCA, the respective ratings already benefit from the highest possible LGF result.

Factors that could lead to a downgrade

» A downgrade of BayernLB's ratings could be triggered following (1) a deterioration in the bank's financial fundamentals supportingits BCA; (2) indications of weakening support from S-Finanzgruppe; (3) an increase in the expected loss severity because of changesin the bank's liability structure, which could result in fewer notches of rating uplift as a result of our Advanced LGF analysis; or (4) alower likelihood of government support.

» A downgrade of BayernLB's BCA could result from weakening asset-quality or capital metrics, although there is some leeway forweaker metrics within the baa3 BCA category.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page onwww.moodys.com for the most updated credit rating action information and rating history.

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Key indicators

Exhibit 2

Bayerische Landesbank (Consolidated Financials) [1]12-172 12-162 12-152 12-142 12-133 CAGR/Avg.4

Total Assets (EUR billion) 210 205 208 218 241 -3.55

Total Assets (USD billion) 252 216 226 264 333 -6.75

Tangible Common Equity (EUR billion) 10 11 10 11 15 -8.35

Tangible Common Equity (USD billion) 12 11 11 14 20 -11.45

Problem Loans / Gross Loans (%) 2.6 2.7 4.2 4.3 4.2 3.66

Tangible Common Equity / Risk Weighted Assets (%) 16.8 16.1 15.0 14.6 16.7 15.67

Problem Loans / (Tangible Common Equity + Loan Loss Reserve) (%) 30.8 30.4 43.5 42.3 34.7 36.36

Net Interest Margin (%) 0.8 0.7 0.8 0.7 0.7 0.76

PPI / Average RWA (%) 1.1 0.9 1.4 1.5 0.8 1.27

Net Income / Tangible Assets (%) 0.3 0.2 0.3 -0.6 0.1 0.16

Cost / Income Ratio (%) 69.3 70.3 60.7 52.9 71.0 64.86

Market Funds / Tangible Banking Assets (%) 44.1 44.2 44.7 48.8 49.7 46.36

Liquid Banking Assets / Tangible Banking Assets (%) 32.1 30.0 30.4 29.8 31.1 30.76

Gross Loans / Due to Customers (%) 146.5 155.3 157.9 164.2 160.1 156.86

[1] All figures and ratios are adjusted using Moody's standard adjustments. [2] Basel III - fully-loaded or transitional phase-in; IFRS. [3] Basel II; IFRS. [4] May include rounding differencesdue to scale of reported amounts. [5] Compound Annual Growth Rate (%) based on time period presented for the latest accounting regime. [6] Simple average of periods presented for thelatest accounting regime. [7] Simple average of Basel III periods presented.Source: Moody's Financial Metrics

ProfileHeadquartered in Munich, Bayerische Landesbank (BayernLB) is a German universal bank offering financial products and services toretail customers, medium-sized and large corporate clients, and real estate customers. BayernLB fully owns Deutsche Kreditbank AG(DKB, A1 stable/A2, baa2)3, a commercial bank that conducts public sector, corporate and online retail operations. BayernLB's fouroperating segments are Corporates and Mittelstand, Real Estate and Savings Banks, DKB and Financial Markets, of which DKB is thestrongest contributor to the group's revenue and profit.

BayernLB had consolidated assets of €215 billion as of December 2017. The bank is majority-owned by the Free State of Bavaria (Aaastable4) and is a member of S-Finanzgruppe. For more information, please see BayernLB's Issuer profile and our German BankingSystem Profile.

Weighted Macro Profile of Very Strong (-)BayernLB's Very Strong (-) Weighted Macro Profile is in line with the Very Strong (-) Macro Profile of Germany, reflecting that thebank's activities are predominantly focused on the German home market.

Germany's Macro Profile reflects its very high economic, institutional and governmental financial strengths and very low susceptibilityto event risk, but also the fact that operating conditions for the German banking system are constrained by high fragmentation in anoversaturated market, low fee income generation and intense competition for domestic businesses.

Recent developmentsOn 3 August 2018, we reclassified a range of senior debt instruments issued by German banks and took rating actions on them. Thechanges came in response to the German legislation that took effect on 21 July 2018, transposing an amendment to the EuropeanUnion's (EU) Bank Recovery and Resolution Directive (BRRD) into domestic law.

We downgraded most of the banks’ senior unsecured bonds that were already outstanding on 20 July 2018, as the legislative changeled us to abandon our previous assumption that these instruments would benefit from government support if required. This is becausethe new law ranks these legacy instruments alongside new junior senior instruments introduced to help EU banks achieve the minimumholdings of loss-absorbing debt stipulated under the BRRD's minimum requirements for own funds and eligible liabilities.

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We also upgraded the banks' (including BayernLB's) issuer ratings and senior unsecured programme ratings. This is because the lawallows German banks, for the first time since the implementation of Germany's first amendment to the national BRRD law, to issuenew preferred senior unsecured debt in a plain vanilla format. These instruments, which rank as German lenders’ most senior plainvanilla unsecured bonds, have become the reference point for their issuer ratings.

Detailed credit considerationsBayernLB's asset quality is sound, but concentrated sector exposures could make it vulnerable in a downturnBayernLB's asset-risk metrics are sound, reflecting the benefits of the extended benign credit cycle in Germany, as well as the bank'sfocused de-risking efforts in previous years. This strength is reflected in the bank's baa1 Asset Risk score, two notches below the a2initial score, which takes into consideration risks not captured by the bank's problem loan ratios — in particular, sector concentrationrisks and single-borrower concentrations — for which we apply negative adjustments.

The overall benign domestic credit environment and the progressed wind-down of the bank's legacy noncore exposures will continueto support BayernLB's asset-risk profile in 2018. The bank's noncore assets, no longer reported as a separate unit since January 2017,represent a modest risk considering that a release of risk charges drove their €190 million contribution to profit in 2017. That said,adjusted for a €1.2 billion legacy exposure to one financial institution, around 40% of BayernLB's €2.8 billion nonperforming loans as ofDecember 2017 were still related to noncore assets.

As of year-end 2017, BayernLB reported a slightly improved ratio of problem loans to gross credit exposure at 1.5%, down from 1.6%as of year-end 2016. The reduction was largely driven by the sale or accelerated workout of underperforming legacy assets. Based onour calculation of the ratio of impaired loans to customers (including 90-day past due loans) to gross loans, the bank's problem loanratio was a modest 2.6% as of December 2017. That said, BayernLB reported a relatively large forborne exposure, which increased 14%in 2017.

BayernLB's risk profile benefited from adequate provisioning of around 33% as of year-end 2017 (the ratio of loan-loss reserves toproblem loans, 2016: 36%), which was broadly in line with that of its domestic peers.

BayernLB's €47.5 billion commercial real estate exposure (2016: €46.5 billion) represents a relatively high 5.1x its Common Equity Tier1 (CET1) capital. This concentration is somewhat mitigated by BayernLB's focus on the modestly volatile German market, in which90% of this exposure originates, and a large €18 billion sub-portfolio of lower-risk financings for social housing, sponsored by Germanmunicipalities. BayernLB's second-largest sector concentration is on utilities, with a total of €22.9 billion as of December 2017. With anincreasing portion related to renewable energy financings, the bank is exposed to policy changes in this highly regulated sector. Most ofthe group's utilities exposure and the retail exposure is housed at its 100% subsidiary, DKB.

BayernLB remains exposed to litigation risk in the context of some €2.3 billion due from Austrian wind-down vehicle Heta. Earlier inJune 2018, the Munich Higher Regional Court declared null and void a decision taken in May 2015 in favour of BayernLB, stating purelyformal procedural reasons. Considering that the disputed amounts due from Heta were principally considered valid claims of BayernLBin the 2015 judgement, we believe the risk of deviating future judgments to be low. However, in the unlikely event that the risk were tomaterialise, the financial burden could be substantial.

Sound capital ratiosBayernLB's financial strength is underpinned by its sound capital ratios and ability to generate capital through profit retention. Ourfavourable assessment is reflected in the bank's baa1 Capital score, although we position it five notches below the aa2 initial scorebecause we include negative adjustments for BayernLB's elevated leverage, the potential for rising risk-weighted assets (RWA) in a lessbenign credit environment or in more volatile markets, and prospective organic growth. In 2018, higher RWA will likely offset furtherimprovement in BayernLB's capital ratios from profit retention, considering that the bank is making efforts to expand in several areas ofits core lending business. In this context, we expect broadly stable capital ratios this year.

As of the end of March 2018, the bank's fully phased-in CET1 capital ratio was 14.6%, down from 15.3% three months earlier. Theweakening was mainly driven by higher RWA, which increased by 4% to €63.7 billion during the three months ended March 2018.The 14.6% CET1 ratio requirement of 9.04%, as determined under the Supervisory Review and Evaluation Process, is adequate in thecontext of its risk profile.

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While BayernLB's CET1 ratio is in line with the German market average, its leverage remains somewhat below average. The bankreported its regulatory leverage ratio at 4.0% as of December 2017, up from 3.8% as of year-end 2016.

Profitability is challenged by low interest ratesWe assign a b1 Profitability score, which is two notches below the ba2 initial score, illustrating that BayernLB's modest profitabilityconstrains its credit profile. Although the bank's profit generation in 2017 was relatively strong on account of higher net interest incomeand unusually low risk charges, BayernLB's high dependence on interest income, persistent margin pressure, the volatility in its fair valuemeasurement results and cost pressures relating to administration expenses leave the bank vulnerable to eroding profit. At the sametime, the relative earnings stability and growth at DKB will continue to reduce earnings volatility and help mitigate revenue and costpressures in the group's corporate and real estate segments in the coming years.

Despite higher annual risk charges, BayernLB had a good first quarter in 2018, reporting a €237 million pretax profit, which was mildlyabove the pretax profit in Q1 2017 (+3%). Higher net interest income of €450 million (+5%) more than compensated the lower feeand commission income of €60 million (-15%).

For full-year 2017, BayernLB reported pretax results of €652 million. Adjusting the reported €708 million pretax profit in the previousyear, with €178 million in positive one-off effects from the sale of equity interests, the pretax result for 2017 was 23% higher thana year earlier. The main drivers of this growth were (1) the higher net interest income of €1.7 billion (+13%), although some of thisgrowth corresponded to lower gains on hedge accounting from the year earlier; and (2) a 2% cost reduction to €1.26 billion. Thesefactors more than offset the lower fee income of €263 million (-11%), mainly because of lower returns on DKB's credit card businessand a sharp decline in the high valuation gains recorded in 2016. The €94 million risk charge (2016: €87 million) remained considerablybelow the bank's run rate through the credit cycle. The €679 million net profit (2016: €550 million) strongly benefitted from a one-offtax refund for previous years, boosting the group's profit retention in 2017.

DKB, which represents one of BayernLB's four operating segments, contributed 56% to the group's net interest income and 42% toits consolidated pretax profit in 2017. While DKB's strong contribution and superior cost-income dynamics make the subsidiary avaluable part of the group's business mix, we understand that BayernLB will nonetheless keep up its efforts to enhance operationsand efficiency at the bank level. In this context, new co-operations and various measures to strengthen business bear potential forprofitability improvement, although probably not in 2018 because of elevated costs.

BayernLB's wholesale funding dependence constrains the baa3 BCAWe assign a ba1 Funding Structure score, three notches above the b1 initial score, which includes positive adjustments for BayernLB'slow-cost covered bond issuances and pass-through subsidised loans included in interbank liabilities. At the same time, our assessmenttakes into account the fact that deposits generated through DKB are partly ring-fenced and therefore not freely available to fundBayernLB's lending business.

BayernLB's wholesale-dependent funding profile weighs on its standalone credit strength. As of the end of December 2017, BayernLB'smarket funding predominantly consisted of €54.4 billion in liabilities to banks and €41.8 billion in issued debt, equivalent to 45%of the bank's total balance sheet, broadly unchanged from the level as of December 2016. The bank's relatively high market fundingdependence is also illustrated in its loan-to-deposit ratio of 147% (2016: 155%). That said, we recognise several mitigating factors,including the fact that interbank borrowings are inflated by some €33 billion in pass-through loans from promotional banks to savingsbanks. For its funding structure, BayernLB further benefits from its access to long-term funds from its customers, as illustrated by one-quarter of the bank's €92 billion customer deposits having durations of over one year.

BayernLB's satisfactory liquidity reserves mitigate funding risksBayernLB's satisfactory liquidity is reflected in the assigned baa3 Liquidity score. Our negative adjustment from the a1 initialscore includes negative adjustments for encumbered liquid assets used as collateral and pass-through interbank claims related topromotional loans. BayernLB's short-term liquidity gaps from funding mismatches are suitably covered by liquidity buffers. The bank'scomfortable liquidity profile is illustrated in its liquidity coverage ratio of 159% as of December 2017 (2016: 136%).

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Support and structural considerationsAffiliate supportBayernLB benefits from S-Finanzgruppe's cross-sector support, which reduces the probability of default because such support would beavailable for stabilising a distressed member bank and not just to compensate for losses in resolution. Our assumption of high cross-sector support provides two notches of rating uplift, leading to an Adjusted BCA of baa1.

Loss Given Failure (LGF) analysisBayernLB is subject to the EU BRRD, which we consider an operational resolution regime. We, therefore, apply our Advanced LGFanalysis where we consider the risks faced by the different debt and deposit classes across the liability structure should the bank enterresolution.

Our Advanced LGF analysis follows the recently revised insolvency legislation in Germany that became effective on 21 July 2018.Following the change in law, the legal hierarchy of bank claims in Germany is now consistent with most other EU countries, wherestatutes do not provide full preference to deposits over senior unsecured debt. However, in our Advanced LGF analysis, we nowconsider not only the results of both the formal legal position (pari passu or de jure scenario), to which we assign a 75% probability,but also an alternative liability ranking, reflecting the resolution authority's discretion to prefer deposits over senior unsecured debt (fulldepositor preference or de facto scenario), to which we assign a 25% probability.

In line with our standard assumptions, we further assume residual tangible common equity of 3%, post-failure losses of 8% of tangiblebanking assets, a 25% runoff in junior wholesale deposits and a 5% runoff in preferred deposits.

» For BayernLB's deposits and senior unsecured debt, rated Aa3, our LGF analysis indicates an extremely low loss given failure, leadingto a three-notch uplift from the bank's baa1 Adjusted BCA.

» For junior senior unsecured debt, rated A2, our LGF analysis indicates a very low loss given failure, leading to a two-notch upliftfrom its baa1 Adjusted BCA.

» For senior subordinated debt, rated Baa2, our LGF analysis indicates a high loss given failure, leading us to position the rating onenotch below the baa1 Adjusted BCA.

» For junior subordinated debt instruments (Genussscheine), rated Baa3(hyb), additional notching applies to reflect the juniorsubordinated claim in liquidation and cumulative coupon deferral features tied to the breach of a balance-sheet loss trigger.

Government support considerationsGiven its size on a consolidated basis, we consider S-Finanzgruppe as domestically and systemically relevant. We, therefore, attributea moderate probability of German government support for all members of the sector, in line with support assumptions for othersystemically relevant banking groups in Europe. For BayernLB, this results in an additional government support uplift by one notch forits long-term senior unsecured debt and deposit ratings.

For junior senior unsecured debt, the legal changes to Germany's bank insolvency rank order has lowered the likelihood of governmentsupport being available for these instruments, because legally they rank pari passu with most of the outstanding (statutorilysubordinated) senior unsecured instruments issued up until 20 July 2018. This pari passu ranking of new junior senior unsecured debtwith legacy (statutorily subordinated) senior unsecured instruments makes it less likely that German authorities would selectivelysupport the legacy instruments (which we reclassified into junior senior unsecured debt), following clarification that the Germanauthorities expect these liabilities to bear losses in a resolution. As a result, we have reduced our government support assumption forthese instruments to low from moderate.

BayernLB's guaranteed senior and subordinated obligations that qualify for grandfathering under the public law guarantee(Gewaehrtraegerhaftung) of the Free State of Bavaria are rated Aaa.

Counterparty Risk Ratings (CRRs)CRRs are opinions of the ability of entities to honour the uncollateralised portion of non-debt counterparty financial liabilities (CRRliabilities) and also reflect the expected financial losses in the event such liabilities are not honoured. CRRs are distinct from ratings

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assigned to senior unsecured debt instruments and from issuer ratings because they reflect that, in a resolution, CRR liabilities mightbenefit from preferential treatment compared with senior unsecured debt. Examples of CRR liabilities include the uncollateralisedportion of payables arising from derivatives transactions and the uncollateralised portion of liabilities under sale and repurchaseagreements.

BayernLB's CRRs are positioned at Aa3/P-1The CRRs, prior to government support, are positioned three notches above the Adjusted BCA of baa1, reflecting the extremely low lossgiven failure from the high volume of instruments that are subordinated to CRR liabilities. BayernLB's CRRs benefit from one notch ofrating uplift based on government support, in line with our support assumptions on deposits and senior unsecured debt.

Counterparty Risk (CR) AssessmentCR Assessments are opinions of how counterparty obligations are likely to be treated if a bank fails and are distinct from debt anddeposit ratings in that they (1) consider only the risk of default rather than both the likelihood of default and expected financial loss,and (2) apply to counterparty obligations and contractual commitments rather than debt or deposit instruments. The CR Assessmentis an opinion of the counterparty risk related to a bank's covered bonds, contractual performance obligations (servicing), derivatives (forexample, swaps), letters of credit, guarantees and liquidity facilities.

BayernLB's CR Assessments are positioned at Aa3(cr)/P-1(cr)The CR Assessments, prior to government support, are positioned three notches above the Adjusted BCA of baa1, reflecting theextremely low loss given failure. BayernLB's CR Assessments benefit from one notch of rating uplift based on government support,which is in line with our support assumptions on deposits and senior unsecured debt.

Methodology and scorecardThe principal methodology we use in rating BayernLB is Banks rating methodology, published in August 2018.

About Moody's Bank ScorecardOur scorecard is designed to capture, express and explain in summary form our Rating Committee's judgement. When read inconjunction with our research, a fulsome presentation of our judgement is expressed. As a result, the output of our scorecardmay materially differ from that suggested by raw data alone (though it has been calibrated to avoid the frequent need for strongdivergence). The scorecard output and the individual scores are discussed in rating committees and may be adjusted up or down toreflect conditions specific to each rated entity.

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Rating methodology and scorecard factors

Exhibit 3

Bayerische LandesbankMacro FactorsWeighted Macro Profile Very

Strong -100%

Factor HistoricRatio

MacroAdjusted

Score

CreditTrend

Assigned Score Key driver #1 Key driver #2

SolvencyAsset RiskProblem Loans / Gross Loans 3.1% a2 ↓ baa1 Sector concentration

CapitalTCE / RWA 16.8% aa2 ← → baa1 Expected trend Nominal leverage

ProfitabilityNet Income / Tangible Assets 0.3% ba2 ← → b1 Expected trend

Combined Solvency Score a2 baa2LiquidityFunding StructureMarket Funds / Tangible Banking Assets 44.1% b1 ↑ ↑ ba1 Extent of market

funding relianceDeposit quality

Liquid ResourcesLiquid Banking Assets / Tangible Banking Assets 32.1% a1 ↓ ↓ baa3 Asset encumbrance

Combined Liquidity Score baa3 ba1Financial Profile baa3

Business Diversification 0Opacity and Complexity 0Corporate Behavior 0

Total Qualitative Adjustments 0Sovereign or Affiliate constraint: AaaScorecard Calculated BCA range baa2-ba1Assigned BCA baa3Affiliate Support notching 2Adjusted BCA baa1

Balance Sheet in-scope(EUR million)

% in-scope at-failure(EUR million)

% at-failure

Other liabilities 91,341 43.6% 98,610 47.1%Deposits 71,259 34.0% 63,991 30.6%

Preferred deposits 52,732 25.2% 50,095 23.9%Junior Deposits 18,527 8.8% 13,896 6.6%

Senior unsecured bank debt 3,532 1.7% 3,532 1.7%Junior senior unsecured bank debt 35,134 16.8% 35,134 16.8%Dated subordinated bank debt 1,446 0.7% 1,446 0.7%Junior subordinated bank debt 414 0.2% 414 0.2%Preference shares (bank) 43 43Equity 6,284 3.0% 6,284 3.0%Total Tangible Banking Assets 209,453 100% 209,453 100%

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De Jure waterfall De Facto waterfall NotchingDebt classInstrumentvolume +

subordination

Sub-ordination

Instrumentvolume +

subordination

Sub-ordination

De Jure De FactoLGF

NotchingGuidance

vs.Adjusted

BCA

AssignedLGF

notching

Additionalnotching

PreliminaryRating

Assessment

Counterparty Risk Rating 29.0% 29.0% 29.0% 29.0% 3 3 3 3 0 a1Counterparty Risk Assessment 29.0% 29.0% 29.0% 29.0% 3 3 3 3 0 a1 (cr)Deposits 29.0% 20.7% 29.0% 22.4% 3 3 3 3 0 a1Senior unsecured bank debt 29.0% 20.7% 22.4% 20.7% 3 3 3 3 0 a1Junior senior unsecured bank debt 20.7% 3.9% 20.7% 3.9% 2 2 2 2 0 a2Dated subordinated bank debt 3.9% 3.2% 3.9% 3.2% -1 -1 -1 -1 0 baa2Junior subordinated bank debt 3.2% 3.0% 3.2% 3.0% -1 -1 -1 -1 -1 baa3 (hyb)

Instrument class Loss GivenFailure notching

AdditionalNotching

Preliminary RatingAssessment

GovernmentSupport notching

Local CurrencyRating

ForeignCurrency

RatingCounterparty Risk Rating 3 0 a1 1 Aa3 Aa3Counterparty Risk Assessment 3 0 a1 (cr) 1 Aa3 (cr) --Deposits 3 0 a1 1 Aa3 Aa3Senior unsecured bank debt 3 0 a1 1 Aa3 Aa3Junior senior unsecured bank debt 2 0 a2 0 A2 A2Dated subordinated bank debt -1 0 baa2 0 Baa2 Baa2Junior subordinated bank debt -1 -1 baa3 (hyb) 0 Baa3 (hyb) --[1] Where dashes are shown for a particular factor (or sub-factor), the score is based on non-public information.Source: Moody's Financial Metrics

Ratings

Exhibit 4Category Moody's RatingBAYERISCHE LANDESBANK

Outlook StableCounterparty Risk Rating Aa3/P-1Bank Deposits Aa3/P-1Baseline Credit Assessment baa3Adjusted Baseline Credit Assessment baa1Counterparty Risk Assessment Aa3(cr)/P-1(cr)Issuer Rating Aa3Senior Unsecured -Dom Curr Aa3Junior Senior Unsecured A2Subordinate Baa2Jr Subordinate -Dom Curr Baa3 (hyb)Commercial Paper P-1Other Short Term -Dom Curr (P)P-1

DEUTSCHE KREDITBANK AG

Outlook StableCounterparty Risk Rating A1/P-1Bank Deposits A1/P-1Baseline Credit Assessment baa2Adjusted Baseline Credit Assessment baa1Counterparty Risk Assessment A1(cr)/P-1(cr)Junior Senior Unsecured -Dom Curr A2

Source: Moody's Investors Service

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Endnotes1 The ratings shown are S-Finanzgruppe's corporate family rating and outlook, and its BCA.

2 The rating shown is Heta Asset Resolution AG's backed subordinated debt rating.

3 The ratings shown are DKB's deposit rating and outlook, its junior senior unsecured debt rating, and its BCA.

4 The rating shown is Bavaria's long-term issuer rating and outlook.

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© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDITRISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THERELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITYMAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGSDO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’SOPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVEMODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’SPUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOTPROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THESUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATIONAND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FORPURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FORRETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACTYOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW,AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTEDOR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANYPERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSESAND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as wellas other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information ituses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However,MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for anyindirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use anysuch information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses ordamages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of aparticular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatorylosses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for theavoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents,representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCHRATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (includingcorporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating,agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintainpolicies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO andrated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually atwww.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s InvestorsService Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intendedto be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, yourepresent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly orindirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion asto the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be recklessand inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or otherprofessional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’sOverseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a NationallyRecognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by anentity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registeredwith the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferredstock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it feesranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

REPORT NUMBER 1136543

11 17 August 2018 Bayerische Landesbank: Update following legislative change in Germany

MOODY'S INVESTORS SERVICE FINANCIAL INSTITUTIONS

CLIENT SERVICES

Americas 1-212-553-1653

Asia Pacific 852-3551-3077

Japan 81-3-5408-4100

EMEA 44-20-7772-5454

12 17 August 2018 Bayerische Landesbank: Update following legislative change in Germany