Deutsche Bank Tier 1 Issue Ratings Lowered To 'B+' From 'BB-' On Narrow Definition Of Available Distributable Items

OVERVIEW Deutsche Bank AG's capacity to make interest payments on Tier 1 and perpetual Tier 2 capital instruments is linked to its unconsolidated Available Distributable Items (ADIs) under German accounting standards, which is a relatively narrow definition. Our central expectation is that Deutsche Bank's eligible ADIs should be sufficient to enable continued interest payments on the Tier 1 and perpetual Tier 2 issues, but the ADI buffer has contracted and the bank could report further unconsolidated losses under German generally accepted accounting principles. In recognition of that uncertainty, we are lowering the issue ratings on Tier 1 securities issued, guaranteed, or supported by Deutsche Bank to 'B+' from 'BB-', and lowering the rating on the Deutsche Bank Capital Finance Trust

...OVERVIEW + Deutsche Bank AG's capacity to make interest payments on Tier 1 and perpetual Tier 2 capital instruments is linked to its unconsolidated Available Distributable Items (ADIs) under German accounting standards, which is a relatively narrow definition. + Our central expectation is that Deutsche Bank's eligible ADIs should be sufficient to enable continued interest payments on the Tier 1 and perpetual Tier 2 issues, but the ADI buffer has contracted and the bank could report further unconsolidated losses under German generally accepted accounting principles. + In recognition of that uncertainty, we are lowering the issue ratings on Tier 1 securities issued, guaranteed, or supported by Deutsche Bank to 'B+' from '##-', and lowering the rating on the Deutsche Bank Capital Finance Trust I perpetual Tier 2 instrument to '##-' from '##'. + The '###+/A-2' issuer credit ratings on Deutsche Bank and the issue ratings on the bank's other debt instruments are not affected. The outlook is stable....

Ratings Action