KfW IPEX-Bank GmbH. Update to credit analysis. CREDIT OPINION 14 November Update

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1 CREDIT OPINION 14 November 218 KfW IPEX-Bank GmbH Update to credit analysis Update Summary We assign Aa2/P-1 deposit ratings to KfW IPEX-Bank GmbH (IPEX-Bank), with a stable outlook. We further assign an Baseline Credit Assessment (BCA) and Adjusted BCA, as well as Aa2/P-1 Counterparty Risk Ratings (CRR) and an Aa2(cr)/P-1(cr) Counterparty Risk Assessment (CR Assessment), to IPEX-Bank. RATINGS KfW IPEX-Bank GmbH Domicile Frankfurt am Main, Germany Long Term CRR Aa2 Type LT Counterparty Risk Rating - Fgn Curr Outlook Not Assigned Long Term Debt Not Assigned Long Term Deposit Aa2 Type LT Bank Deposits - Fgn Curr Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. IPEX-Bank's ratings reflect (1) the bank's BCA and Adjusted BCA; (2) the result of our Advanced Loss Given Failure (LGF) analysis, which takes into account the severity of loss faced by the different liability classes in resolution, and which results in three notches of rating uplift for IPEX-Bank's ratings; and (3) a moderate likelihood of IPEX-Bank receiving government support, resulting in one additional notch of rating uplift. The BCA reflects the bank's (1) asset risk profile that is characterized by significant industry and single-borrower concentrations inherent to its business model; (2) improved and now strong capitalisation in the context of meaningful tail risks; and (3) refinancing agreement with its ultimate parent Kreditanstalt fuer Wiederaufbau(KfW; Aaa stable/aaa stable1), which provides access to funding and liquidity at all times at market rates. Exhibit 1 Rating Scorecard - Key financial ratios KfW IPEX-Bank GmbH (BCA: ) Median -rated banks 25% 9% 8% Analyst Contacts Alexander Hendricks, CFA Associate Managing Director alexander.hendricks@moodys.com Carola Schuler MD-Banking carola.schuler@moodys.com CLIENT SERVICES Americas Asia Pacific Japan EMEA % 6% 15% 5% 4% 1% 3% 5% 2% 3.1% 2.2%.2% 76.6% 11.2% Funding Structure: Market Funds/ Tangible Banking Assets Liquid Resources: Liquid Banking Assets/Tangible Banking Assets % 1% % Asset Risk: Problem Loans/ Gross Loans Capital: Tangible Common Equity/Risk-Weighted Assets Solvency Factors (LHS) Source: Moody's Financial Metrics Profitability: Net Income/ Tangible Assets Liquidity Factors (RHS) Liquidity Factors Goetz Thurm, CFA VP-Senior Analyst goetz.thurm@moodys.com Solvency Factors 2%

2 Credit strengths» De minimis funding, as well as liquidity risks, given privileged and contractually committed access to group funding from KfW.» Strong capital adequacy metrics following a 3 million capital increase and 8 million capital reinjection by KfW in 217.» Substantial shrinkage of the bank's shipping exposures. Credit challenges» High single-industry and single-borrower concentrations, resulting from the bank's focus on export and project finance activities.» Profitability likely to remain subdued in the short-term and volatile in the long-term, due to highly cyclical exposures and foreign currency risks. Rating outlook» The outlook on IPEX-Bank's Aa2 deposit ratings is stable, reflecting our assumption of IPEX-Bank's stable solvency metrics and continued low funding and liquidity risks. Factors that could lead to an upgrade» An upgrade of IPEX-Bank's ratings could be triggered following an upgrade of the bank's BCA.» Upward pressure on IPEX-Bank's BCA could be exerted as a result of a combination of (1) a further significant de-risking of its balance sheet, coupled with a meaningful reduction in concentrations in highly cyclical industries, such as shipping, renewable energies, and oil and gas; (2) a meaningful further strengthening of the bank's capital base such that it withstands expected pressures from upcoming regulatory changes, specifically by fully compensating for the effects from the introduction of IFRS 9 and the proposed Basel IV capital framework; (3) significantly higher and sustained earnings-generation capacity, which would enhance the bank's shock-absorption capacity prior to the full distribution of profits to KfW Beteiligungsholding GmbH. Factors that could lead to a downgrade» IPEX-Bank's ratings could be downgraded as a result of (1) a downgrade of the bank's BCA, (2) fewer notches of rating uplift for the bank's deposits as a result of our Advanced LGF analysis, or (3) a lowering of our Moderate government support assumption.» IPEX-Bank's BCA could be downgraded following (1) an erosion of the bank's asset quality and earnings, combined with credit losses that materially exceed the bank's current expectations; or (2) a weakening in its capital levels and reserves, especially if this was driven by a resurfacing of the shipping industry crisis.» Although considered highly unlikely at present, a downgrade of IPEX-Bank's ratings could also be triggered following a structural reorganisation of KfW that would loosen the ties of IPEX-Bank with its government-guaranteed parent. This would likely lead to (1) a lowering of the bank's BCA based on funding and liquidity risk considerations; or (2) a lowering of our Moderate government support assumption, or both. In addition, any resulting longer-term shift in the bank's funding mix could result in fewer notches of rating uplift for the bank's deposits as a result of our Advanced LGF analysis. 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 on for the most updated credit rating action information and rating history November 218

3 Key indicators Exhibit 2 KfW IPEX-Bank GmbH (Consolidated Financials) [1] Total Assets (EUR billion) Total Assets (USD billion) Tangible Common Equity (EUR billion) Tangible Common Equity (USD billion) Problem Loans / Gross Loans (%) Tangible Common Equity / Risk Weighted Assets (%) Problem Loans / (Tangible Common Equity + Loan Loss Reserve) (%) Net Interest Margin (%) PPI / Average RWA (%) Net Income / Tangible Assets (%) Cost / Income Ratio (%) Market Funds / Tangible Banking Assets (%) Liquid Banking Assets / Tangible Banking Assets (%) Gross Loans / Due to Customers (%) , , , , CAGR/Avg , , [1] All figures and ratios are adjusted using Moody's standard adjustments. [2] Basel III - fully-loaded or transitional phase-in; LOCAL GAAP. [3] Basel II; LOCAL GAAP. [4] May include rounding differences due 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 the latest accounting regime. [7] Simple average of Basel III periods presented. Source: Moody's Financial Metrics Profile IPEX-Bank is a German-based specialist provider of export and project finance. The company is a wholly owned subsidiary of KfW Beteiligungsholding GmbH, which in turn is a 1%-owned subsidiary of KfW, Germany s largest public development bank, which serves the government s domestic and international promotional public-policy objectives. KfW itself is wholly owned and fully guaranteed by the Government of Germany (Aaa stable) and is largely exempt from banking regulation. IPEX-Bank, in contrast, is operating as a commercial bank without a guarantee and falls under the supervision of the German regulator BaFin. Within KfW, IPEX-Bank is responsible for the underwriting and management of the group's export finance, as well as domestic and international project finance exposures, which stood at 61.9 billion as of 31 December 217. During 217, IPEX-Bank extended new loan commitments of 13.8 billion, of which 1.7 billion comprised third-party bank refinancing under the Commercial Interest Reference Rate (CIRR) Ship Financing and the European Recovery Program (ERP) Export Financing schemes, representing agency business that IPEX-Bank manages on behalf of KfW and the German government. Over the last few years, about half of new loans originated by IPEX-Bank were of a promotional nature and were directly booked on KfW's balance sheet, while the remaining commercial exposures are held by IPEX-Bank, which reported total assets under German GAAP of 25.4 billion as of 31 December 217. As of the same date, IPEX-Bank employed 68 staff and operated from its headquarters in Frankfurt, a branch office in London and nine representative offices in New York, Sao Paulo, Mexico City, Johannesburg, Istanbul, Abu Dhabi, Mumbai, Moscow and Singapore. For more information, please see IPEX-Bank's most recent Issuer Profile and our German Banking System Profile. Weighted Macro Profile of Strong We derive the Weighted Macro Profile of Strong from IPEX-Bank's exposure at default breakdown by geography. As of December 217, Germany, which has a Very Strong (-) Macro Profiles assigned, accounted for 29% of IPEX-Bank's exposures, while North America (6%; Very Strong (-)), Oceania (5%; Strong (+)) and other European Union countries (4%; Strong) represented a further 51% of risk positions. Since IPEX-Bank also had exposures to regions with a comparatively weaker Macro Profile, such as Asia Pacific (9%; Moderate (+)), Latin America (8%; Moderate), and Africa (3%; Weak), the exposure-weighted average of the individual regional Macro Profiles resulted in a Weighted Macro Profile of Strong for IPEX-Bank November 218

4 Detailed credit considerations High sector and large single-borrower concentrations in cyclical industries define IPEX-Bank's asset-risk profile We assign a b Asset Risk score, five notches below the baa1 initial score (which is conditioned by the bank's Strong Weighted Macro Profile), to reflect IPEX-Bank's cyclical and higher-risk nature of its export and project financing activities and the concomitant high sector and large single-borrower concentrations. IPEX-Bank runs significant business-model-inherent risk concentrations in highly cyclical industries. These exposures can lead to elevated levels of loan-loss charges, as witnessed after the 28 financial crisis, thereby eroding the bank's pre-provision income and adding to significant earnings volatility. As of 31 December 217, IPEX-Bank's commercial lending exposures, including guarantees and undrawn loan commitments, amounted to 3.7 billion (216: 34.9 billion), which were marked by high concentrations in the power, renewable energy, and water ( 7.5 billion), aviation and rail ( 5.9 billion), and maritime ( 5.2 billion) industry segments. The year-onyear decline in overall business volume by 4.2 billion or 12% was driven by asset sales, a lower level of origination than in the previous year, and a 14% weaker US dollar vis-à-vis the Euro during 217. IPEX-Bank's maritime exposures materially declined by 1.5 billion or 29% in 217, mainly reflecting ship disposals, a lower level of commitments, and the weaker US dollar. At the same time, the portfolio reductions increased the utilisation of specific loan loss provisions for this segment, which declined by 73 million to 123 million, representing 52% of the bank's total specific loan-loss reserves at year-end 217 (216: 66%). While IPEX-Bank has reduced its exposure to the ailing segments of the maritime industry through the workout and sale of higher-risk shipping loans, including the sub-segments of special-purpose ships (oil and drilling ships) and asset-based closed-end fund structures without direct recourse to shipping companies (so-called 'KG-portfolios', largely consisting of single-ship funds), the bank's maritime risk positions still represented 162% of its tangible common equity as of 31 December Furthermore, despite the material decline in shipping loans and overall balance sheet shrinkage, IPEX-Bank's problem loans fell by only 11 million to 631 million in 217, which increased the problem loan to gross loan ratio again to 2.8% from 2.5% previously (215: 4.%; 214: 5.5%). Concurrently, the coverage of problem loans by the stock of existing loan-loss reserves reduced to 51% from 63%. However, the only marginal reduction in problem loans was owing to the transfer of watch list exposures into the problem loan portfolio, which resulted in a material decline in watch list loans during 217. In addition, while the coverage ratio fell, the share of problem loans being insured by guarantees from export credit rating agencies increased, more than offsetting the decline in specific loan loss provisions. Hence, overall credit risk at IPEX-Bank did not increase, despite the higher problem loan ratio, which was also evidenced by a reduced level of required loan-loss charges in the bank's income statement in 217 versus the previous years. However, with global trade tensions potentially derailing the fragile recovery in global shipping markets and the bank's meaningful exposures to highly cyclical industries being inherent to its business model, we also do not foresee any improvement in the bank's asset risk profile in the future, prompting us to anchor our assigned Asset Risk score at the b level, five notches below the current baa1 initial score. IPEX-Bank's capital adequacy metrics substantially improved in 217 We assign an aa2 Capital score, in line with the initial score, reflecting the bank's improved and now strong capitalisation ratios following a 3 million capital increase in 217 and the expectation that IPEX-Bank can access additional capital resources from KfW by means of a private investor test on a going concern basis in case of need. IPEX-Bank has operated under a profit and loss transfer agreement (PLTA) since 1 January 216. Under the PLTA, IPEX-Bank only has to pay de minimis taxes for its London branch operations, but has to upstream its entire net profit to its parent, KfW Beteiligungsholding GmbH, where it is taxed, utilizing tax loss carryforwards incurred at the parent level during the financial crisis3. These taxed profits may then be re-injected into IPEX-Bank in the following year, which KFW Beteiligungsholding GmbH did so in 217 and 218, when it transferred 8 million and 75 million of capital, respectively, representing the after-tax amount of the 15 million and 113 million upstreamed to the parent in 216 and 217. In addition to the reinjection of capital, IPEX-Bank can retain earnings by building up so-called 34g and 34f reserves under German GAAP, which reduce the amount that has to be upstreamed under the PLTA. Furthermore, KfW has decided to increase the capital base of IPEX-Bank by 3 million during 217. In order to inject new capital into IPEX-Bank on a going concern basis, KfW has to conduct and pass a private investor test according to the European Commission's criteria, ensuring that such capital measures are not deemed 4 14 November 218

5 to be state aid. KfW successfully passed the private investor test in 217 and we expect that it would do so again in case of need, given that KfW owns the entire equity and almost all liabilities of IPEX-Bank. Following the above capital measures, IPEX-Bank's tangible common equity (TCE) ratio increased to 2.2% as of year-end 217 from 14.7% as of year-end 216, with a similar improvement having been recorded in the regulatory Tier 1 ratio, which rose to 23.6% from 18.%. The bank's TCE leverage likewise accelerated to 12.5% from 9.7% and the regulatory leverage ratio rose to 11.5% from 9.4%. Not included in the above capital metrics is the bank's undisclosed 34f contingency reserve, which provides additional loss-absorbing capacity. IPEX-Bank also partly hedges its capital ratios by investing its 34g reserve, which is included in tangible common equity and Common Equity Tier 1, in a fund denominated in US dollars. Despite the bank's very comfortable capitalization at present, we expect that its capital metrics will soften again somewhat in the years to come, owing to renewed volume growth and several regulatory developments, such as (1) the implementation of IFRS 9, which IPEX-Bank will reflect in its German GAAP accounts in 218 in order to align them with the consolidating IFRS accounts of KfW; (2) the transitional arrangements under the regulatory Basel III capital framework, leading to a partial phasing out of 1. billion of hybrid capital instruments, reducing Additional Tier 1 capital by 1 million per annum over the next five years; and (3) the phasing in of the Basel IV capital framework from 222, which could lead to significantly higher risk-weighted assets, specifically when considering the underlying nature of IPEX-Bank's lending arrangements. Since the decline in capital ratios is expected to be very gradual, though, and given IPEX-Bank's access to additional KfW capital in principle, we assign an aa2 Capital score, in line with the initial score. Profitability is expected to remain subdued in the short-term and volatile in the long-term We assign a b1 Profitability score, in line with the initial score, reflecting that IPEX-Bank's earnings power is expected to remain subdued in the short-term and volatile in the long-term. Since IPEX-Bank operates under a PLTA, its reported net profit is zero. In order to gauge the underlying earnings power of the bank, we assume a normalized tax rate of 34% that we apply to the Moody's-adjusted pre-tax income, which resulted in an adjusted net profit of 45 million in 217, a decline from the 79 million recorded in 216. The lower net profit was the result of a weaker topline and a higher cost base, partly offset by lower loan-loss charges, which declined by 12 million to 63 million following the stabilization of the shipping markets, which had caused outsized provisioning requirements in 216. IPEX-Bank's revenues fell by 78 million to 452 million, reflecting a decline in net interest income by 42 million to 294 million and a 32 million lower other income result, which dropped to 9 million. Commission income of 153 million stayed roughly flat year-on-year and included 18 million of fee income from KfW for the administration of the promotional exposures booked on KfW's balance sheet. Finally, operating expenses increased by 6 million to 35 million, mainly due to 46 million of foreign exchange losses caused by the weaker US dollar. The adjusted net profit of 45 million generated in 217, translated into a return on tangible assets of.18% (216:.27%). For the fiscal year 218, we expect profitability to improve again somewhat, as the US dollar has strengthened and business volumes are expected to advance again. However, these positive effects could at least be partly offset by the introduction of IFRS 9. Over a longerterm horizon, we continue to consider the bank vulnerable to increases in risk charges during periods of macroeconomic uncertainty, specifically when considering the highly cyclical nature of its core segments. In particular, ongoing excess capacities in the shipping industry remain a concern, as do trade and geopolitical tensions, which could have adverse effects on the bank's more concentrated oil and gas exposures, for instance. As a result of the subdued profitability outlook in the short-term and the potential volatility in the long-term, we assign a b1 Profitability score, in line with the initial score. IPEX-Bank's refinancing agreement with KfW ensures reliable access to funding... We assign an aa1 Funding Structure score, 17 notches above the ca initial score, reflecting the refinancing agreement between IPEXBank and KfW, which ensures reliable access to funding even in times of market stress. Under the refinancing agreement, KfW has contractually committed itself to provide all funding to IPEX-Bank at market prices. Given KfW's status as a quasi-government issuer in the capital markets, this arrangement ensures that IPEX-Bank has secure access to funding at any time, above all during periods of market stress, when KfW is seen as a safe haven. The only third-party funding provided to IPEXBank as of 31 December 217 were 232 million in cash collateral and institutional deposits (sourced for the sole purpose of being designated a deposit-taking institution, a requirement for retaining the London branch license), 234 million in fiduciary liabilities, and 119 million of pass-through development bank loans, which, in total, comprised about 2% of IPEX-Bank's balance sheet November 218

6 IPEX-Bank's funding structure mimics that of a stand-alone commercial bank, with the funding mix sold to KfW containing covered bonds, senior unsecured debt, subdebt, and hybrid debt, utilizing plain vanilla and structured, as well as short- and long-term formats in various currencies. IPEX-Bank thereby ensures that tenor mismatches and foreign currency risks, as well as undue benefits from its privileged access to KfW funding, are largely avoided. Nonetheless, the risk of IPEX-Bank losing access to funding is all but mitigated by the refinancing agreement, leading us to assign an aa1 Funding Structure score, 17 notches above the initial score and one notch below the implied aaa Funding Structure score of KfW....and effectively rules out any liquidity shortfalls We also assign an aa1 Liquid Resources score, nine notches above the ba1 initial score, taking into account IPEX-Bank's refinancing agreement with its parent, which effectively rules out any liquidity shortfalls. The bulk of IPEX-Bank s liquid resources are represented by the bank s High Quality Liquid Assets (HQLA) portfolio, solely comprising securities issued by KfW, which amounted to 2. billion as of year-end 217. As of the same date, IPEX-Bank also had access to a.5 billion irrevocable credit facility from KfW, and it could access additional liquidity resources through the refinancing agreement with its parent at any time, thereby effectively ruling out any liquidity shortfalls. Hence, we also assign an aa1 Liquid Resource score, nine notches above the ba1 initial score and one notch below the implied aaa Liquid Resources score of KfW. Support and structural considerations Loss Given Failure analysis IPEX-Bank is subject to the EU Bank Recovery and Resolution Directive (BRRD), which we consider to be an Operational Resolution Regime. We therefore apply our Advanced LGF analysis, where we consider the risks faced by the different debt and deposit classes across the liability structure should the bank enter resolution. Our Advanced LGF analysis follows the recently revised insolvency legislation in Germany that became effective on 21 July 218. Following the change in law, the legal hierarchy of bank claims in Germany is now consistent with most other European Union (EU) countries, where statutes do not provide full preference to deposits over senior unsecured debt. However, in our Advanced LGF analysis we now consider 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 resolution authority discretion to prefer deposits over senior unsecured debt (full depositor preference, or 'de facto' scenario), to which we assign a 25% probability. We further assume residual tangible common equity of 3% and losses post-failure of 8% of tangible banking assets. In addition, we assume a 26% share of deposits being junior wholesale deposits, for which we factor in a 25% run-off prior to failure, while we assume a 5% run-off in preferred deposits. These ratios are in line with our standard assumptions. IPEX-Bank's ratings strongly benefit from the fact that the bank is almost exclusively financed by its parent. We consider this funding to be bail-inable and subordinated to any third-party deposits or counterparty risk liabilities. Given the large volume of parental funding, our Advanced LGF analysis indicates an extremely low loss given failure for IPEX-Bank's deposits and counterparty risk liabilities, leading us to position their Provisional Rating Assessments at a, three notches above the Adjusted BCA. While we acknowledge the low likelihood that a bail-in would be considered by resolution authorities in case of failure given the bank's unique funding structure (whereby the German government would effectively bail itself in), IPEX-Bank formally falls under the BRRD, which is reflected in our application of the Advanced LGF approach. Government support Although European banks operate in an environment of materially weakened prospects for direct financial assistance from the government, we assume a Moderate support level for IPEX-Bank, resulting in one additional notch of extraordinary government support being incorporated in the bank's ratings. This reflects IPEX-Bank's importance for and close integration into the business strategy of its parent KfW. Counterparty Risk Ratings Counterparty Risk Ratings (CRR) are opinions of the ability of entities to honour the uncollateralised portion of non-debt counterparty financial liabilities (CRR liabilities) and also reflect the expected financial losses in the event such liabilities are not honoured. CRR are distinct from ratings assigned to senior unsecured debt instruments and from issuer ratings because they reflect that, in a resolution, 6 14 November 218

7 CRR liabilities might benefit from preferential treatment compared with senior unsecured debt. Examples of CRR liabilities include the uncollateralised portion of payables arising from derivatives transactions and the uncollateralised portion of liabilities under sale and repurchase agreements. IPEX-Bank's CRR are positioned at Aa2/P-1 The CRR, prior to government support, are positioned three notches above the Adjusted BCA of, reflecting the extremely low lossgiven-failure from the high volume of instruments, primarily junior senior unsecured debt, that are subordinated to CRR liabilities in our Advanced LGF analysis. IPEX-Bank's CRR also benefit from one notch of rating uplift provided by government support, in line with our Moderate support assumption on deposits. Counterparty Risk Assessment The Counterparty Risk Assessment (CR Assessment) is an opinion of how counterparty obligations are likely to be treated if a bank fails and is distinct from debt and deposit ratings in that it (1) considers only the risk of default rather than both the likelihood of default and the expected financial loss suffered in the event of default; and (2) applies to counterparty obligations and contractual commitments rather than debt or deposit instruments. The CR Assessment is an opinion of the counterparty risk related to a bank's covered bonds, contractual performance obligations (servicing), derivatives (e.g., swaps), letters of credit, guarantees and liquidity facilities. IPEX-Bank's CR Assessment is positioned at Aa2(cr)/P-1(cr) The bank's CR Assessment is positioned four notches above the Adjusted BCA, incorporating 1) three notches of LGF-uplift derived from the buffer against default provided by more subordinated instruments, primarily junior senior unsecured debt, to the senior obligations represented by the CR Assessment; and 2) one notch of government support uplift, assuming a Moderate level of support. To determine the CR Assessment, we focus purely on subordination in our Advanced LGF analysis, taking no account of the volume of the instrument class. Methodology and scorecard Methodology The principal methodology we used in rating IPEX-Bank was Banks published in August 218. About Moody's Bank Scorecard Our Bank Scorecard is designed to capture, express and explain in summary form our Rating Committee's judgment. When read in conjunction with our research, a fulsome presentation of our judgment is expressed. As a result, the output of our scorecard may materially differ from that suggested by raw data alone (though it has been calibrated to avoid the frequent need for strong divergence). The scorecard output and the individual scores are discussed in rating committees and may be adjusted up or down to reflect conditions specific to each rated entity November 218

8 Rating methodology and scorecard factors Exhibit 3 KfW IPEX-Bank GmbH Macro Factors Weighted Macro Profile Strong Factor 1% Historic Ratio Initial Score Expected Trend Assigned Score Key driver #1 Key driver #2 3.1% baa1 b Sector concentration Single name concentration Capital TCE / RWA 2.2% aa2 aa2 Stress capital resilience Nominal leverage Profitability Net Income / Tangible Assets.2% b1 b1 Return on assets Expected trend Solvency Asset Risk Problem Loans / Gross Loans Combined Solvency Score Liquidity Funding Structure Market Funds / Tangible Banking Assets 76.6% ca aa1 Market funding quality Extent of market funding reliance Liquid Resources Liquid Banking Assets / Tangible Banking Assets 11.2% ba1 aa1 Additional liquidity resources Access to committed facilities Combined Liquidity Score Financial Profile Business Diversification Opacity and Complexity Corporate Behavior Total Qualitative Adjustments Sovereign or Affiliate constraint: Scorecard Calculated BCA range Assigned BCA Affiliate Support notching Adjusted BCA b3 baa2 aa1 Aaa a2-baa1 Balance Sheet is not applicable November 218

9 Debt class Counterparty Risk Rating Counterparty Risk Assessment Deposits Instrument class De Jure waterfall De Facto waterfall Notching LGF Assigned Additional Preliminary LGF notching Rating Instrument Sub- Instrument SubDe Jure De Facto Notching Guidance notching Assessment volume + ordination volume + ordination vs. subordination subordination Adjusted BCA a a (cr) a Loss Given Failure notching Counterparty Risk Rating Counterparty Risk Assessment Deposits Additional Preliminary Rating Notching Assessment a a (cr) a Government Support notching Local Currency Rating Aa2 Aa2 (cr) Aa2 Foreign Currency Rating Aa2 -Aa2 [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 4 Category KFW IPEX-BANK GMBH Outlook Counterparty Risk Rating Bank Deposits Baseline Credit Assessment Adjusted Baseline Credit Assessment Counterparty Risk Assessment Moody's Rating Stable Aa2/P-1 Aa2/P-1 Aa2(cr)/P-1(cr) PARENT: KREDITANSTALT FUER WIEDERAUFBAU Outlook Bank Deposits Senior Unsecured Commercial Paper Other Short Term -Fgn Curr Other Short Term -Dom Curr Stable Aaa/P-1 Aaa P-1 P-1 (P)P-1 Source: Moody's Investors Service Endnotes 1 The ratings shown are KfW's deposit ratings and senior unsecured debt ratings together with their corresponding outlooks. 2 For more details on German banks' reduced exposure to ship financing, please see Ship lenders have significantly cut tail risk, October The losses arose from the rescue of IKB Deutsche Industriebank by KfW in November 218

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11 11 Contacts CLIENT SERVICES Maryna Harbal Associate Analyst Americas Asia Pacific November 218 Japan EMEA