Fitch downgrades IKB

Fitch Ratings said it downgraded IKB Deutsche Industriebank AG's hybrid securities to CC from CCC-. Their respective recovery ratings were downgraded to RR5 from RR4.

The agency said it affirmed IKB's individual rating at E and support rating at 1. IKB's long-term issuer default rating of A+ and short-term issuer default rating of F1 remain on Rating Watch negative, where they were placed on March 6. The subordinated debt issues have an A rating and also are on Rating Watch negative.

"Higher net loss expectations and a further lengthened period of time expected before the hybrid debt securities resume coupon payments triggered the downgrade," Sabine Bauer, a Fitch director, said in a written statement. "IKB's hybrid debt securities now have below average recovery prospects."

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