Fitch rates senior preferred debt of German banks

Fitch Ratings said it assigned ratings to the debut senior preferred notes of Bayerische Landesbank, Landesbank Baden-Wuerttemberg, Norddeutsche Landesbank Girozentrale, DZ Bank AG Deutsche Zentral-Genossenschaftsbank and Aareal Bank AG.

Bayerische Landesbank’s, Landesbank Baden-Wuerttemberg’s, Aareal Bank AG’s and Norddeutsche Landesbank Girozentrale’s senior preferred notes were assigned an A- rating.

DZ Bank’s senior preferred notes were rated AA-.

Senior preferred is a new class of senior unsecured debt introduced by way of amendments to Article 46f of the German Banking Act that came into force on July 21.

“This new regime implements the reform of the Bank Resolution and Recovery Directive agreed at EU level at end-2017, which aims at harmonising the ranking of senior debt in resolution and insolvency and creating a level playing field across the EU,” the agency said in a news release.

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