Fitch ups Deutsche Bank, Aareal bonds

Fitch Ratings said it upgraded 31 structured senior unsecured bonds issued by Deutsche Bank AG (A-/negative) to A from A- and five by Aareal Bank AG (BBB+/stable) to A- from BBB+.

Fitch said the action follows its review of the expected ranking of these notes in a resolution scenario given their structural features.

The upgrade to one notch above the banks' respective long-term issuer default ratings reflects the agency’s view that the terms of these notes are commensurate with "preferred" treatment under Germany's revised resolution regime in force since Jan. 1, 2017.

Deutsche Bank’s and Aareal's statutorily preferred senior unsecured debt would be protected from default in a resolution scenario by large buffers of junior and statutorily non-preferred senior debt.

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