DBRS reviews debt of German bank groups

DBRS said it placed under review with negative implications the long-term senior debt ratings of six German banking groups.

The groups include Deutsche Bank AG, Deutsche Pfandbriefbank AG, DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Sparkassen-Finanzgruppe, Landesbank Berlin AG and Norddeutsche Landesbank.

The agency said the action is in response to ongoing legislative changes in Germany, including the most recent planned change to harmonize the liability structure of German banks more closely with other European jurisdictions.

Specifically, the amendment of section 46f of the German Banking Act, which is expected to take effect by the end of July, will allow for the issuance of both lower ranking senior non-preferred debt as well as higher ranking preferred senior debt.

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