Moody's downgrades ratings on 10 German banks

English.news.cn   2011-11-17 19:10:38

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BERLIN, Nov. 17 (Xinhua) -- Moody's Investors Service late Wednesday downgraded the ratings on debt and deposit of 10 German public-sector banks.

The judgement was based upon recent EU rules to restricte financial aid to bank, together with a bank resolution scheme adopted in Germany.

The rating downgrading is reportedly irrelevant to the ongoing euro zone debts crisis. It is linked to the newly-adopted regulation in Germany which reduced remarkably the chances of banks to obtain external support and restrictions on support set out by the European Commission, according to Carola Schuler, a managing director on Moody's banking team.

Moody's downgraded DekaBank Deutsche Girozentrale by one notch, while three banks -- Landesbank Hessen-Thueringen GZ, Landesbank Saar and HSH Nordbank AG -- were downgraded two notches, and BayernLB and Deutsche Hypo, both had their ratings lowered by three notches to "Baa1" from "A1."

Editor: Yang Lina

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