New York, May 03, 2018 -- Moody's Investors Service, ("Moody's") today
affirmed the ratings of Deutsche Bank Trust Corporation (DBTC, Long-term
Issuer rating Baa2), as well as the baseline credit and counterparty
risk assessments and ratings of its bank subsidiaries, including
Deutsche Bank Trust Company Americas, Deutsche Bank Trust Company
Delaware, and Deutsche Bank National Trust Company. Moody's
changed the outlook to negative from stable on the entities' long-term
deposit and issuer ratings. This action follows Moody's assignment
on April 27, 2018 of a negative outlook to the deposits of DBTC's
parent bank, Deutsche Bank AG (DB).
Affirmations:
..Issuer: Deutsche Bank National Trust Company
.... Adjusted Baseline Credit Assessment,
Affirmed baa1
.... Baseline Credit Assessment, Affirmed
baa1
.... Counterparty Risk Assessment, Affirmed
A3(cr)
.... Short term Counterparty Risk Assessment,
Affirmed P-2(cr)
.... Issuer Rating, Affirmed Baa2,
outlook changed to negative from stable
.... Short term Deposit Rating, Affirmed
P-1
.... Long term Deposit Rating, Affirmed
A2 outlook changed to negative from stable
..Issuer: Deutsche Bank Trust Company Americas
.... Adjusted Baseline Credit Assessment,
Affirmed baa1
.... Baseline Credit Assessment, Affirmed
baa1
.... Counterparty Risk Assessment, Affirmed
A3(cr)
.... Short term Counterparty Risk Assessment,
Affirmed P-2(cr)
.... Issuer Rating, Affirmed Baa2,
outlook changed to negative from stable
.... Short term Deposit Rating, Affirmed
P-1
.... Long term Deposit Rating, Affirmed
A2, outlook changed to negative from stable
..Issuer: Deutsche Bank Trust Company Delaware
.... Adjusted Baseline Credit Assessment,
Affirmed baa1
.... Baseline Credit Assessment, Affirmed
baa1
.... Counterparty Risk Assessment, Affirmed
A3(cr)
.... Short term Counterparty Risk Assessment,
Affirmed P-2(cr)
.... Issuer Rating, Affirmed Baa2,
outlook changed to negative from stable
.... Short term Deposit Rating, Affirmed
P-1
.... Long term Deposit Rating, Affirmed
A2, outlook changed to negative from stable
..Issuer: Deutsche Bank Trust Corporation
.... Issuer Rating, Affirmed Baa2,
outlook changed to negative from stable
Outlook Actions:
..Issuer: Deutsche Bank National Trust Company
....Outlook, Changed To Negative From
Stable
..Issuer: Deutsche Bank Trust Company Americas
....Outlook, Changed To Negative From
Stable
..Issuer: Deutsche Bank Trust Company Delaware
....Outlook, Changed To Negative From
Stable
..Issuer: Deutsche Bank Trust Corporation
....Outlook, Changed To Negative From
Stable
RATINGS RATIONALE
The affirmation of the ratings of DBTC and its subsidiaries reflects the
solid intrinsic credit risk profile of DBTC reflecting its emphasis on
operating services, good asset quality and strong regulatory ring
fencing. Accordingly, DBTC's bank subsidiaries carry baseline
credit assessments of baa1 which is three notches higher than DB's
ba1 BCA.
Despite DBTC's distinctive credit features, Moody's expects
the ultimate franchise value and overall customer confidence in DBTC and
its subsidiaries to be closely connected to the creditworthiness of Deutsche
Bank AG. It is unusual in Moody's rating's configurations
for a subsidiary's BCA to exceed the standalone BCA of the parent
by more than three notches. This is because deterioration in the
credit quality of a parent entity can directly or indirectly affect the
credit standing of bank subsidiaries through several channels.
Therefore, the negative outlook on DBTC reflects the rising execution
challenges at DB detailed in our April 27, 2018 release.
WHAT COULD CHANGE THE RATING UP?
The negative outlook indicates that there is no imminent pressure on DBTC's
ratings.
WHAT COULD CHANGE THE RATING DOWN?
Downward pressure could develop on DBTC and its subsidiaries, if
their own solvency or liquidity profiles were to deteriorate or if DB
is downgraded.
The principal methodology used in these ratings was Banks published in
April 2018. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Peter E. Nerby
Senior Vice President
Financial Institutions Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Ana Arsov
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653