Fitch lowers IKB hybrids to junk

Fitch Ratings said it downgraded IKB Deutsche Industriebank AG's hybrid debt securities to long-term BB- from A.

Fitch said that they remain on rating watch negative.

IKB is rated long-term issuer default A+ with stable outlook, short-term issuer default rating F1, support 1 and individual F, Fitch said, adding that its subordinated debt issues are rated A.

The downgrade of the hybrid debt securities reflects Fitch's conclusion that KfW's support - KfW owns 37.8% of IKB - extends to IKB as an institution as a whole and may not be available to every class of liability, in particular junior subordinated instruments.

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