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Rating Action:

Moody's downgrades Deutsche Bank to Aa3/C+ from Aa1/B; outlook stable

04 Mar 2010

London, 04 March 2010 -- Moody's Investors Service has today downgraded Deutsche Bank AG's long-term deposit and senior debt ratings to Aa3 from Aa1, and its bank financial strength rating (BFSR) to C+ from B. At the same time, the long-term debt ratings of its rated branches and most of its subsidiaries were also downgraded. Additionally, the ratings on the bank's senior subordinated debt were downgraded to A1 from Aa2, and as a result of Moody's revised Guidelines for Rating Bank Hybrids and Subordinated Debt, the bank's trust preferred debt was downgraded to Baa1 from Aa3 (for cumulative instruments) and to Baa2 from Aa3 (for non-cumulative instruments). The Prime-1 short-term ratings for the bank and its rated subsidiaries and branches were affirmed. The rating outlook for all ratings is now stable. Today's rating action concludes the review for downgrade that Moody's had initiated on 19 November 2009.

According to Moody's, the downgrade of Deutsche Bank's ratings primarily reflects a combination of three factors:

1.) The continuing preponderance of capital market activities and the ensuing challenges for risk management which potentially expose the bank to earnings volatility that would be inconsistent with the bank's previous ratings.

2.) The delay in the acquisition of Deutsche Postbank AG (rated D+/A1) is set to defer the possible benefits of this acquisition beyond what was initially anticipated at the time when the rating agency changed the outlook to negative in December 2008.

3.) Deutsche Bank's other businesses, which had been expected to provide a more stable earnings anchor, have shown a greater degree of earnings volatility than Moody's had previously expected.

However, Moody's notes that the resulting Aa3 rating is well positioned given Deutsche Bank's strong franchise, market position and resilience against any further major transition risk in its ratings, as reflected in the stable outlook.

RELIANCE ON CAPITAL MARKET ACTIVITIES AND RISK MANAGEMENT CHALLENGES

The 2007-2008 credit crisis exposed vulnerabilities in the wholesale investment banking business model at a number of banks, and intensified Moody's view of the riskiness of this business. Such vulnerabilities include risk management weaknesses, high leverage, confidence sensitivity, excessive concentrations and opacity of risk. Deutsche Bank has a large capital markets franchise in its Corporate and Banking and Securities business to which it allocates more than half of its capital. The bank has some additional exposures to capital markets through its Corporate Investments business.

For many firms that commit substantial capital to such businesses, apart from some limited additional disclosure on legacy positions, there remains limited transparency regarding their risk profile or the trajectory of risk-taking, especially regarding exposure to extreme events, or "tail risk." David Fanger, Moody's Senior Vice President and lead analyst for Deutsche Bank, explained: "This opacity, especially when combined with high leverage, risk concentrations and reliance on wholesale funding, is difficult to reconcile with BFSRs that translate into high investment-grade ratings on a stand-alone basis."

Exposure to tail risk is both difficult to measure and to manage; as such, successful risk management at such highly complex firms is enormously challenging. In this context, the importance of effective risk management becomes paramount. Such effective risk management depends on a deep understanding of the firms' risk profile and a strong discipline in risk-taking to ensure that their risk profile remains within the stated risk appetite. Moody's believes that Deutsche Bank has managed credit risk well, especially in its banking book. However, with regard to market risk management, as well as the areas in which market risk and credit risk intersect, the track record has not been as successful. Although Deutsche Bank has taken a number of steps to enhance its market risk management, including the coordination between analytical and functional risk teams, Moody's believes the current efforts will take more time to succeed.

During 2007, 2008 and 2009, Deutsche Bank took substantial charges in its capital markets businesses, through a combination of write-downs, trading losses and credit provisions on assets reclassified from trading to the loan portfolio. In response to the losses suffered, Deutsche Bank has taken steps to reduce its risk profile by exiting certain proprietary trading activities, adopting additional internal risk limits and measures, and reducing its leverage from what had been, in hindsight, very high levels. In the first half of 2009, lower risk-taking did not hurt revenues as Deutsche Bank, along with many of its capital markets peers, benefited from unusually wide trading margins, thereby helping to absorb charges from "legacy" positions while still adding to capital. However, Moody's expects that, as competition in the capital markets business re-intensifies, it will be more difficult for Deutsche Bank to meet its ambitious earnings objectives. Moody's is therefore concerned that the bank could choose to add more leverage and risk to counter these pressures, thereby potentially putting creditors at greater risk. Identifying such increases in risk-taking, and in particular tail risks, in a timely manner may be difficult given the opacity constraints described above.

Despite these risks, Moody's recognizes that Deutsche Bank has taken significant steps to improve its capital position. Deutsche Bank boosted its Tier 1 ratio to 12.6% at the end of 2009 from 8.6% at the end of 2007, although the bank's core Tier 1 ratio increased more modestly to 8.7% from 6.9%. However, from a crude leverage perspective (including the deduction of derivative replacement costs from total assets for IFRS reporters), at FYE 2009 Deutsche Bank showed a higher exposure than most of its capital markets peers, with an estimated adjusted tangible common equity leverage ratio of 3.1% compared to a peer median of 3.8%. "Moreover, Deutsche Bank remains exposed to additional potential losses on its legacy assets," Mr. Fanger noted, "most notably in commercial real estate, leveraged finance and financial guarantor receivables. Under a more severe stress scenario, Moody's believes that the bank would have sufficient earnings and capital to absorb those incremental losses -- but such a scenario would nonetheless have an impact on the bank's capital ratios."

Furthermore, the rating agency believes that Deutsche Bank's capital ratios are likely to face further pressure from pending acquisitions, potential increases in loan-loss provisions and higher regulatory capital charges. With regard to the latter, Moody's notes that the amendments to the market risk framework -- to be implemented at the end of 2010 -- should facilitate a better alignment of capital and the risks undertaken in certain capital markets activities. However, Moody's also believes that higher capital requirements could pressure Deutsche Bank's management to add incremental risk in other areas in order to satisfy shareholder objectives.

DELAY IN ACQUISITION OF DEUTSCHE POSTBANK

In September 2008, Deutsche Bank announced an agreement to acquire a minority stake in Deutsche Postbank AG, along with an option to acquire additional shares at a later date, and a put option to sell shares. At the time, Moody's indicated that the acquisition of Postbank, if funded so as to preserve Deutsche Bank's capital ratios, could be a positive for bondholders. In December 2008, when Moody's changed its outlook on Deutsche Bank's ratings to negative, the rating agency highlighted the planned acquisition of Postbank as an important, positive strategic step supporting the ratings. This reflected to potential for a Postbank acquisition to significantly increase the proportion of stable earnings at Deutsche Bank, and at the same time provide the bank with additional retail deposits, thus strengthening its funding profile.

However, Postbank itself is facing considerable challenges from the crisis due to its sizable exposures to structured assets and commercial real estate. This was reflected in Moody's recent downgrade of Postbank's ratings to D+ BFSR and A1 for deposits. Moody's believes that these challenges have caused Deutsche Bank's management to be more cautious with regard to any eventual acquisition of a controlling stake in Postbank. This could in turn delay the timing and the extent of any integration with Postbank, and thus increases the uncertainty regarding the potential realization of benefits for bondholders from any such acquisition. In this context, Moody's believes that, for the time being, it is no longer appropriate for Deutsche Bank's ratings to incorporate any such potential benefit.

VOLATILITY OF REMAINING BUSINESSES

Moody's also noted that the earnings stability in Deutsche Bank's own retail banking business has proven to be less reliable than previously anticipated. The earnings volatility in this segment reflects the heavy reliance this segment had prior to 2008 on revenues from the sale of retail investment products and investment certificates with embedded derivatives. The decline in capital markets led to a sharp drop-off in revenues from such sales activity, and only a portion of the lost revenue has been offset through loan and deposit growth and higher loan margins. In response, the bank has undertaken a significant restructuring initiative, which in the short-term has led to additional operating costs. However, Moody's notes that, over the longer term, this initiative could help return pre-provision profitability to previous levels.

In addition, similar to many of Deutsche Bank's peers, earnings in the bank's asset wealth management business have also come under greater pressure due to lower asset management fees, reflecting lower market values on assets under management. These results were compounded by losses on sizeable seed capital positions, most notably in commercial real estate. Similar to the steps taken in retail banking, Deutsche Bank has also incurred significant restructuring charges in this business in an attempt to restore profitability.

Taken together, these results highlight a higher degree of correlation than previously anticipated between the earnings of Deutsche Bank's primary capital markets businesses and those of its more stable businesses. In light of this, Moody's believes the benefits to bondholders from this diversification may be lower than previously thought.

RATING OUTLOOK IS STABLE

The stable outlook reflects Moody's view that, notwithstanding the concerns highlighted above, Deutsche Bank benefits from a strong and geographically diversified market presence in many of its businesses, as well as an improved capital position, as also noted above. The stable outlook also reflects Moody's expectation that profitability is likely to improve in Private Clients and Asset Management segments over the near to medium term, as the benefits of the bank's restructuring initiatives take hold. Profitability is likely to be further augmented by higher profits from the Global Transaction Banking segment as interest rates rise from their current low levels.

The rating agency explains that upward pressure on Deutsche Bank's ratings could result from a reduced reliance on capital markets activities; clearer evidence that market risk management and the business line are working together effectively; or improved structural liquidity through a combination of a higher proportion of liquid assets and a reduced reliance on short-term wholesale funding.

Alternatively, downward pressure on the ratings could result from an increase in the bank's risk appetite, as evidenced by increased leverage or increased market risk, which in turn is indicated by Value at Risk (VaR), economic capital, or stress test results.

RATINGS ON HYBRID CAPITAL INSTRUMENTS ALSO DOWNGRADED

As a part of today's rating action, Moody's has also downgraded its ratings of Deutsche Bank's hybrid securities in line with its revised Guidelines for Rating Bank Hybrids and Subordinated Debt, published in November 2009. Prior to the global financial crisis, Moody's had incorporated into its ratings an assumption that support provided by national governments and central banks to shore up a troubled bank would, to some extent, benefit the hybrid debt holders as well as the senior creditors. However, Moody's has found that the systemic support for these instruments has not been forthcoming in many cases. The revised methodology largely removes previous assumptions of systemic support. In addition, based on the instrument's features, the revised methodology generally widens the notching on a hybrid's rating. Moody's rating action removes systemic support from Deutsche Bank's hybrids and, for instruments with non-cumulative coupon payments, widens the gap to the bank's standalone ratings by an additional notch.

The starting point in Moody's revised approach to rating hybrid securities is the Adjusted Baseline Credit Assessment (Adjusted BCA). The Adjusted BCA reflects the bank's standalone credit strength, including parental and/or cooperative support, if applicable. The Adjusted BCA excludes systemic support. Following the downgrade of the BFSR, the Adjusted BCA for Deutsche Bank AG is A2 -- the same as the BCA, since parental and/or cooperative support does not apply.

The rating on Deutsche Bank's upper Tier 2 trust preferred security, issued by Deutsche Bank Capital Finance Trust I, was downgraded to Baa1, i.e. two notches below the Adjusted BCA, from Aa3. This security has a junior subordinated claim in liquidation, and its coupon payments are cumulative except when a coupon skip is mandated by the bank's regulator. The two-notch downgrade reflects the removal of systemic support, and thus also reflects the downgrade of the BFSR.

The ratings on Deutsche Bank's Tier 1 and contingent Tier 1 trust preferred securities were downgraded to Baa2, i.e. three notches below the Adjusted BCA, from Aa3. These securities have a preferred stock claim in liquidation and their coupon payments are non-cumulative (coupons on the contingent Tier 1 securities were cumulative, but were converted to non-cumulative in 2008 when Deutsche Bank exercised its conversion option in order to qualify as Tier 1). A coupon skip is optional for the issuer, and there is no mandatory trigger tied to a net loss at the bank, although there is a mandatory trigger in the case of a balance sheet loss or a net loss at the trust. The two-notch downgrade reflects the removal of systemic support as well as the downgrade of the BFSR, and Moody's added an additional notch to the downgrade to reflect the non-cumulative coupon payments.

The ratings on the Tier III tranches of Deutsche Bank's MTN programmes were downgraded to A1 from Aa2, one notch below the bank deposit rating, due to its senior subordinated claim and weak deferral triggers which are breached only when regulatory capital ratios are at or below the minimum.

RATINGS OF SUBSIDIARIES

As a part of today's rating action, Moody's has also downgraded the ratings of a number of Deutsche Bank subsidiaries which depend upon Deutsche Bank for support. Those changes are as follows:

- DB UK Bank Limited (DBUK):

Moody's downgraded the deposit and senior debt ratings to A2 from Aa3, reflecting the downgrade of Deutsche Bank's BFSR to C+, which results in a BCA for Deutsche Bank of A2. Moody's incorporates full parental support from Deutsche Bank for DBUK, but does not incorporate any systemic support into DBUK's ratings. At the same time, the BFSR of DBUK was aligned with that of Deutsche Bank's at C+, reflecting the highly integrated and harmonized nature of this specialized banking subsidiary.

- Deutsche Bank Americas Finance LLC

- Deutsche Bank Finance N.V.

- Deutsche Bank Financial Inc.

- Deutsche Bank Financial LLC

- Deutsche Finance (Netherlands) B.V.

The ratings on the senior debt obligations and MTN programs of the above-named subsidiaries were downgraded to Aa3 from Aa1, and the subordinated debt ratings of Deutsche Bank Financial LLC were lowered to A1 from Aa2, reflecting full credit substitution derived from the guarantee on the rated obligations of these subsidiaries.

- Deutsche Australia Limited:

Moody's has withdrawn this issuer's Prime-1 commercial paper rating and Aa1/Prime-1 ratings on the senior Euro MTN programme, reflecting the termination of the respective MTN and commercial paper programmes.

- Deutsche Bank Trust Company Delaware

- Deutsche Bank National Trust Company

- Deutsche Bank Trust Company Americas

- Deutsche Bank Trust Corporation

- Deutsche Bank Securities Inc.

The long-term ratings of the above-named subsidiaries remain on review for possible downgrade, pending consideration of the support arrangements and degree of integration with Deutsche Bank.

Please also refer to a separate press release for rating actions taken on the rated Mexican subsidiaries of Deutsche Bank, Deutsche Bank Mexico, S.A. and Deutsche Securities Mexico, S.A.de C.V.

RATING CORRECTION OF DEUTSCHE BANK AG, LONDON BRANCH SUBORDINATED DEBT SECURITY (ISIN XS0210953039)

Moody's has today also corrected the rating of a single Deutsche Bank AG, London Branch subordinated debt security. At the time of issuance, the security was rated at the senior unsecured rating level. As a subordinated security, the instrument should have been rated a notch lower. The downgrade to A1 from Aa1 reflects this correction as well as the two-notch downgrade of Deutsche Bank's other subordinated debt obligations to A1 from Aa2.

PREVIOUS RATING ACTION AND RATING METHODOLOGIES

The last rating action on Deutsche Bank was implemented on 19 November 2009 when Moody's placed the bank's long-term ratings on review for possible downgrade.

The principal methodology used in rating this issuer was Moody's "Bank Financial Strength Ratings: Global Methodology", published in February 2007 and "Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology" published in March 2007, available on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website.

Deutsche Bank AG, headquartered in Frankfurt, reported total assets of EUR1.5 trillion and total equity of EUR38.0 billion at the end of December 2009.

The following ratings were affected by today's rating action:

Issuer: DB UK Bank Limited

..Downgrades:

.... Issuer Rating, Downgraded to A2 from Aa3

....Senior Unsecured Deposit Rating, Downgraded to A2, A2 from Aa3, Aa3

..Upgrades:

.... Bank Financial Strength Rating, Upgraded to C+ from C

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Australia Limited

..Outlook Actions:

....Outlook, Changed To Rating Withdrawn From Rating Under Review

..Withdrawals:

....Senior Unsecured Commercial Paper, Withdrawn, previously rated P-1

....Senior Unsecured Medium-Term Note Program, Withdrawn, previously rated P-1, Aa1

Issuer: Deutsche Bank AG

..Downgrades:

.... Bank Financial Strength Rating, Downgraded to C+ from B

.... Issuer Rating, Downgraded to Aa3 from Aa1

....Multiple Seniority Medium-Term Note Program, Downgraded to Aa3, A1 from Aa1, Aa2

....Multiple Seniority Shelf, Downgraded to (P)Aa3, (P)A1 from (P)Aa1, (P)Aa2

....Subordinate Regular Bond/Debenture, Downgraded to A1 from Aa2

....Senior Unsecured Deposit Program, Downgraded to Aa3 from Aa1

....Senior Unsecured Deposit Note/Takedown, Downgraded to Aa3 from Aa1

....Senior Unsecured Commercial Paper, Downgraded to Aa3 from Aa1

....Senior Unsecured Medium-Term Note Program, Downgraded to Aa3 from Aa1

....Senior Unsecured Regular Bond/Debenture, Downgraded to Aa3 from a range of Aa2 to Aa1

....Senior Unsecured Deposit Rating, Downgraded to Aa3, Aa3 from Aa1, Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank AG, London Branch

..Downgrades:

....Multiple Seniority Medium-Term Note Program, Downgraded to a range of A1 to Aa3 from a range of Aa2 to Aa1

....Subordinate Regular Bond/Debenture, Downgraded to A1 from a range of Aa2 to Aa1

....Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to Aa3 from Aa1

....Senior Unsecured Medium-Term Note Program, Downgraded to Aa3 from Aa1

....Senior Unsecured Regular Bond/Debenture, Downgraded to Aa3 from Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank AG, New York Branch

..Downgrades:

....Senior Unsecured Deposit Note/Takedown, Downgraded to Aa3 from Aa1

....Senior Unsecured Deposit Rating, Downgraded to Aa3 from Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank AG, New Zealand

..Downgrades:

....Subordinate Regular Bond/Debenture, Downgraded to A1 from Aa2

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank AG, Paris Branch

..Downgrades:

....Senior Unsecured Deposit Rating, Downgraded to Aa3, Aa3 from Aa1, Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank AG, Singapore Branch

..Downgrades:

....Senior Unsecured Deposit Program, Downgraded to Aa3 from Aa1

....Senior Unsecured Deposit Note/Takedown, Downgraded to Aa3 from Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank AG, Sydney Branch

..Downgrades:

....Multiple Seniority Medium-Term Note Program, Downgraded to Aa3, A1, A1 from Aa1, Aa2, Aa2

....Senior Unsecured Deposit Program, Downgraded to Aa3 from Aa1

....Senior Unsecured Deposit Note/Takedown, Downgraded to Aa3 from Aa1

....Senior Unsecured Medium-Term Note Program, Downgraded to Aa3 from Aa1

....Senior Unsecured Regular Bond/Debenture, Downgraded to Aa3 from Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Negative

Issuer: Deutsche Bank Americas Finance LLC

..Downgrades:

....Senior Unsecured Medium-Term Note Program, Downgraded to Aa3 from Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Finance Trust I

..Downgrades:

....Junior Subordinated Regular Bond/Debenture, Downgraded to Baa1 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Funding Trust I

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Funding Trust IV

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Funding Trust IX

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Funding Trust V

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Funding Trust VI

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Funding Trust VII

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Funding Trust VIII

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Funding Trust X

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Funding Trust XI

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Trust III

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Capital Trust V

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Contingent Capital Trust II

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Contingent Capital Trust III

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Contingent Capital Trust V

..Downgrades:

....Preferred Stock Preferred Stock, Downgraded to Baa2 from Aa3

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Finance N.V.

..Downgrades:

....Senior Unsecured Regular Bond/Debenture, Downgraded to Aa3 from Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Financial Inc.

..Downgrades:

....Senior Unsecured Medium-Term Note Program, Downgraded to Aa3 from Aa1

....Senior Unsecured Regular Bond/Debenture, Downgraded to Aa3 from Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Bank Financial LLC

..Downgrades:

....Subordinate Medium-Term Note Program, Downgraded to A1 from Aa2

....Subordinate Regular Bond/Debenture, Downgraded to A1 from Aa2

....Senior Unsecured Medium-Term Note Program, Downgraded to Aa3 from Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

Issuer: Deutsche Finance (Netherlands) B.V.

..Downgrades:

....Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to Aa3 from Aa1

....Senior Unsecured Regular Bond/Debenture, Downgraded to Aa3 from Aa1

..Outlook Actions:

....Outlook, Changed To Stable From Rating Under Review

New York
David Fanger
Senior Vice President
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

London
Johannes Wassenberg
Managing Director
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's downgrades Deutsche Bank to Aa3/C+ from Aa1/B; outlook stable
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CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

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