The Landesbanks' close ties with German states are tantamount to a 
government guarantee. It lets the 12 public banks get higher credit 
ratings--and therefore cheaper money--than they would otherwise. Their 
financial-strength ratings reflect a truer position. If they lose their 
privileged status, their credit ratings will doubtless fall. Here's how three 
of them compare with two of Germany's biggest private banks.

                                           FINANCIAL
BANK                     CREDIT            STRENGTH

BAYERISCHE LANDESBANK     Aaa                 C
WESTDEUTSCHE LANDESBANK   Aa1                 D
LB HESSEN-THuRINGEN       Aaa                 C+
DEUTSCHE BANK             Aa3                 B
DRESDNER BANK             Aa3                 B

DATA: MOODY'S INVESTORS SERVICE