Fitch cuts some Allgemeine Hypothekenbank ratings

Fitch Ratings said it has downgraded Allgemeine Hypothekenbank Rheinboden's subordinated obligations to BB- from BBB- and changed the Rating Watch to negative from evolving.

At the same time, Fitch said it has downgraded the company's participation rights (Genussscheine) to B+ from BBB- and changed the Rating Watch to negative from evolving.

The company's long-term rating of BBB, short-term rating of F3 and support rating 2, all on Rating Watch evolving, are only applied to the bank's senior unsecured obligations. The company's individual rating is E.

The actions follow the receipt of further information on the nature of the support mechanism put in place for the company. While there are a number of possible outcomes for the company, depending upon the success of sale discussions, Fitch said it appears likely that in a liquidation scenario the support mechanism will be restricted to senior unsecured creditors.

The downgrades reflect Fitch's view that investors in the issuer's subordinated obligations or Genussscheine are in a materially weaker position than senior creditors.

© 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.