Moody’s acts on 14 German banks

Moody's said it assigned senior-senior unsecured bank debt ratings and took actions for the following institutions, including their foreign branches and issuance vehicles:

• Bayerische Landesbank: 78 bonds upgraded to A1 stable from A2 stable;

• Berlin Hyp: One bond upgraded to A1 positive from A2 positive;

• Commerzbank AG: 49 bonds upgraded to A2 stable from Baa1 stable;

• DekaBank Deutsche Girozentrale: Seven bonds upgraded to Aa2 stable from Aa3 stable;

• Deutsche Apotheker- und Aerztebank eG: Three bonds upgraded to Aa1 stable from Aa3 stable;

• Deutsche Bank AG: 29 bonds upgraded to A3 stable from Baa2 stable;

• Deutsche Hypothekenbank AG: One bond upgraded to A3 negative from Baa1 negative;

• DZ Bank AG: 60 bonds upgraded to Aa1 stable from Aa3 positive;

• HSH Nordbank AG: 59 bonds affirmed at Baa3 developing;

• Landesbank Baden-Wuerttemberg: 18 bonds upgraded to Aa3 stable from A1 stable;

• Landesbank Hessen-Thueringen GZ: 58 bonds upgraded to Aa3 stable from A1 stable;

• Muenchener Hypothekenbank eG: 13 bonds upgraded to Aa3 stable from A1 stable;

• Norddeutsche Landesbank GZ: 26 bonds upgraded to A3 negative from Baa1 negative; and

• UniCredit Bank AG: Seven bonds upgraded to A2 stable from Baa1 stable.

At the same time, the agency upgraded the senior-senior debt rating level, by up to two notches, 350 bonds issued by 13 German banks and their foreign branches and issuing vehicles. Previously, the agency rated these bonds in line with other senior unsecured bank debt. Following these upgrades, their ratings are now rated at the same level as junior deposits.

Furthermore, Moody's affirmed the ratings of 59 senior-senior unsecured bonds issued by one bank.

Moody’s said the actions were triggered by a guidance document published in the summer by the German regulatory bodies – Bafin (Bundesanstalt fuer Finanzdienstleistungen), Deutsche Bundesbank (Germany's central bank) and FMSA (Bundesanstalt fuer Finanzmarktstabilisierung) – on the treatment of certain debt instruments issued by German banks under the upcoming change to the legal insolvency ranking of bank claims, which will become effective as of Jan. 1.

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