S&P assigns BBB to DZ Bank notes

Standard & Poor's said it assigned its BBB long-term issue ratings to four proposed perpetual additional tier 1 (AT1) capital notes to be issued by DZ Bank AG Deutsche Zentral-Genossenschaftsbank (AA-/stable/A-1+) with an expected aggregate issuance amount of up to €750 million.

In accordance with its criteria, the BBB issue ratings reflect the agency’s analysis of the proposed instruments and DZ Bank's creditworthiness.

S&P considers DZ Bank a core subsidiary of the German cooperative banking sector and therefore equalize our long-term rating on DZ Bank with the sector's group credit profile, which is assessed at aa-.

Given the bank's core group status, S&P rates the proposed notes by notching down from the AA- long-term rating on DZ Bank because it expect the overall group to support the notes.

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