Moody's downgrades DZ Bank

Moody's Investors Service said it downgraded the junior senior unsecured debt ratings of DZ Bank AG to A2 from A1. At the same time, the rating agency affirmed the bank's senior unsecured debt ratings at Aa1; the outlook remains negative.

Moody's also corrected the rating class for the tier I perpetual limited recourse securities issued by DZ Bank Perpetual Funding Issuer (Jersey) Ltd. to preferred stock non-cumulative. “Due to an internal administrative error, these hybrid securities were previously mislabeled as junior subordinate. This correction has no impact on the current Baa3 (hyb) ratings or the ratings history,” Moody’s said in a press release.

The one-notch downgrade to A2 from A1 was prompted by a considerable reduction in the volume of this loss-absorbing instrument, in combination with strong balance sheet growth, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.