S&P puts Deutsche Pfandbriefbank on watch

S&P said it placed Deutsche Pfandbriefbank (pbb) A issuer rating on CreditWatch with negative implications.

The Single Resolution Board, the European Union’s central resolution authority within the banking union, may change its stance on its preferred resolution strategy, S&P said.

“The CreditWatch placement reflects that we may decide to no longer include two notches of uplift for additional loss-absorbing capacity (ALAC) in our ratings on pbb, which would result in a downgrade to BBB. We intend to resolve the CreditWatch within the next three months, following our review of the consequences of this potential change in regulatory stance,” S&P said in a press release.

The agency also affirmed all the bank’s issue ratings, including the senior nonpreferred debt.

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