Moody’s decreased credit rating of Deutsche Bank to Baa1 with negative perspective

Deutsche Bank

Deutsche BankThe international rating agency Moody’s decreased the credit rating of the largest German bank Deutsche Bank from A3 to Baa1 with negative perspective. The reason for decrease of credit rating is changes in the German legislation on bankruptcy, planned for January 2017. Under the new legislation rules in case of bankruptcy of bank, the investments will have to be more heavily protected than certain uncovered debt instruments. For Deutsche Bank, the year began difficult after last week it said it expects for 2015 to report net loss of about 6.7 billion EUR because of write-offs, court costs, restructuring and tough market conditions. The bank shares fell with 10%, and investors were worried that it may be necessary to strengthen the company’s finances by raising new capital.

Following this new German law, international rating agency Moody’s decreased credit ratings of 35 German banks, including Commerzbank, which also got credit rating Baa1 with negative perspective.

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Viliyana Filipova
My name is Viliyana Filipova and I’m working as content writer and analyst of Business News Feeds Journal. I'm writing about finance statements, business analyze and employment for Central and Eastern Europe, Russia and Middle East.

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