Moody's may cut Allgemeine Hypothekenbank Rheinboden

Moody's Investors Service said it placed on review for possible downgrade Allgemeine Hypothekenbank Rheinboden AG's (AHBR) Baa1/P-3 long- and short- term debt and deposit ratings.

Moody's also said it downgraded to Ca from Ba1 the ratings on AHBR's profit participation rights and these remain on review for possible further downgrade.

Moody's added it affirmed the ratings for subordinated debt of Ba1 under review for possible downgrade and the BFSR rating of E.

Moody's said that the rating action on the long- and short- term deposit ratings follows the announcement of Lone Star Funds (unrated) that it has agreed to acquire a majority stake in AHBR and that due to the uncertainty surrounding the acquisition of AHBR by Lone Star Funds with respect to AHBR's long term strategy, its business model going forward and the likelihood and capacity of support from its new owner, a rating change of more than one notch is possible.

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