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
