Fitch Ratings on July 11 affirmed 's viability rating at"b" and removed it from rating watch positive.

The rating agency affirmed the bank's long-term issuerdefault rating at BBB-, with a negative outlook and support rating at 2. HSHNordbank's short-term issuer default rating was affirmed at F3.

The ratings actions follow the EU's decision to approve therestoration of HSH Nordbank's €10billion guarantee provided by its federal state owners and the bankbeing relieved from part of its nonperforming legacy assets by an assettransfer to its owners and sales to the market.

HSH Nordbank's viability rating reflects Fitch's view of thebank's weak profitability and that it is unlikely to improve until the bank'sfuture business model has been decided in the event of a of the bank.

The negative outlook on the issuer default rating reflectsthe agency's expectation that a sale could result in a downgrade of the issuerdefault ratings if the new owners have a lower ability or tendency to providesupport than the bank's current federal state owners, Hamburg andSchleswig-Holstein.