Moody's lowers BRE Bank

Moody's Investors Service said it downgraded BRE Bank SA's long-term bank deposit rating to Baa2 from Baa1 and placed it on review for further downgrade.

BRE's short-term rating of prime 2 was also placed on downgrade review.

The agency also said BRE Bank Hipoteczny's (BRE Hypo) long-term rating of Baa3 and short-term ratings of prime-3 also were placed on review for downgrade.

These actions are driven by the downgrade of the parent and support-provider Commerzbank AG's stand-alone financial strength rating to D+, mapping to Baa3, from C- and also on review for further downgrade.

BRE's and BRE Hypo's stand-alone ratings were not affected by this rating action and continue to have stable outlooks, Moody's said.

The supported ratings of the both subsidiaries of Commerzbank AG incorporate notching uplifts due to parental support considerations, the agency said.

This is based on the strategic ownership and control of these entities, Moody's said, as well as the history of funding and capital support provided by the parent.

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