Moody's cuts ratings outlook for 17 German banks

27 July 2012

A group of 17 banks in Germany have had their ratings outlooks reduced amid ongoing fears about the country's economic future.

Moody's Investors Service has announced it has changed its expectations for these financiers' long-term debt and deposit or guaranteed debt obligations to negative due to their close association with the government.

Earlier this week, the body announced it had put Germany's AAA sovereign rating on negative watch for the near future as the eurozone debt crisis rumbles on and continues to threaten the nation's economy.

And the group explained the fact that the 17 banks in question are guaranteed either by the central administration or local governments means their creditworthiness is affected by any change in the state's situation.

However, Moody's added: "The outlook on several other government-related issuers have been changed to negative from stable to capture Moody's change in the outlook for the creditworthiness of the respective owners."

By Tony Aynsley

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development