Moody's downgrades 6 German banks

6 June 2012

A group of German banks have been downgraded today (6 June) amid ongoing concerns about the state of the eurozone.

In a clear signal that the continuing continental crisis is now beginning to affect even the region's biggest economic power, leading credit agency Moody's announced this morning that six financiers in Germany have had their ratings cut by one notch.

DekaBank, DZ Bank, Norddeutsche Landesbank, Landesbank Hessen-Thueringen and Landesbank Baden-Wuerttemberg have all been reduced, while the country's second-largest lender Commerzbank has been downgraded to A2 from A3.

Meanwhile, Moody's opted to continue reviewing Deutsche Bank - Germany's biggest bank - on an ongoing basis before making a final decision on whether or not it also needs to be cut.

In a statement, the agency noted: "Today's rating actions are driven by the increased risk of further shocks emanating from the euro area debt crisis, in combination with the banks' limited loss-absorption capacity."

By Gary Cooper

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