Moody’s lifts Commerzbank BCA

Moody’s Investors Service said it affirmed Commerzbank AG's senior unsecured debt instrument ratings at Baa1 and reclassified the instruments to junior senior unsecured.

The agency also upgraded the bank's long-term deposit rating to A1 from A2.

Moody’s upgraded Commerzbank's baseline credit assessment and adjusted baseline credit assessment to baa2 from baa3.

The actions combine the effects of Commerzbank's improved standalone financial strength with the effects of the legal change to the German banks' insolvency rank order which took effect on July 21, the agency said.

The legal changes reintroduced an option for banks to issue plain vanilla preferred senior unsecured liabilities (senior unsecured debt class), as well as to issue new contractually non-preferred debt (junior senior unsecured debt class) which will rank alongside outstanding legacy plain vanilla senior unsecured instruments.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.