Fitch cuts IKB hybrids to CCC-

Fitch Ratings said it downgraded IKB Deutsche Industriebank AG's hybrid securities to CCC- from the B range and removed them from Rating Watch negative where they were placed on Feb. 14 and Dec. 21.

"Taken all together, our assumptions result in a long period of time before the hybrid debt securities resume coupon payments," Sabine Bauer, a Fitch director, said in a written statement. "The introduction of a preferential claim as part of February's support package and higher initial losses extend the time until hybrid debt holders will receive payments again."

IKB's long- and short-term issuer default ratings continue to reflect the extremely high probability of support from its main shareholder and its importance to the key German "Mittelstand" sector.

The individual rating reflects Fitch's view that IKB's financial position remains vulnerable, according to the agency.

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