Moody's cuts Deutsche Bank

Moody's Investors Service said it downgraded Deutsche Bank AG's long-term deposit and senior debt ratings to Aa3 from Aa, and its bank financial strength rating to C+ from B. The long-term debt ratings of its rated branches and most of its subsidiaries also were downgraded, along with the ratings on the bank's senior subordinated debt to A1 from Aa2 and the bank's trust preferred debt to Baa1 from Aa3 (for cumulative instruments) and to Baa2 from Aa3 (for non-cumulative instruments). The prime-1 short-term ratings were affirmed.

The outlook is now stable.

The downgrades conclude a review that began in November.

The downgrades reflect the continuing preponderance of capital market activities and the ensuing challenges for risk management, which potentially expose the bank to earnings volatility that would be inconsistent with the bank's previous ratings, Moody's said.

The agency noted that the resulting Aa3 rating is well positioned given Deutsche Bank's strong franchise, market position and resilience against any further major transition risk.

© 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.