Research Update: Germany-Based Citigroup Subsidiary Citigroup Global Markets Deutschland AG Rated Preliminary 'A+/A-1'; Outlook Stable

Citigroup Global Markets Deutschland AG (CGMD) will convert from a full-fledged bank to a specialized securities trading and financial services institution as of April 27, 2018. We assume CGMD will then be 100% owned by Citigroup Inc. through its London-based subsidiary Citigroup Global Markets Ltd. We expect CGMD will have returned its deposit taking license and will have transferred its previous banking activities to Citibank Europe PLC on April 27, 2018. We consider that CGMD will become a fully integrated, core subsidiary of Citigroup ('a+' group credit profile), and we are assigning our preliminary 'A+/A-1' issuer credit ratings to CGMD. The stable outlook is aligned with that on Citigroup's core operating subsidiaries. On April 26, 2018, S&P Global Ratings assigned

...+ Citigroup Global Markets Deutschland AG (CGMD) will convert from a full-fledged bank to a specialized securities trading and financial services institution as of April 27, 2018. + We assume CGMD will then be 100% owned by Citigroup Inc. through its London-based subsidiary Citigroup Global Markets Ltd. + We expect CGMD will have returned its deposit taking license and will have transferred its previous banking activities to Citibank Europe PLC on April 27, 2018. + We consider that CGMD will become a fully integrated, core subsidiary of Citigroup ('a+' group credit profile), and we are assigning our preliminary 'A+/A-1' issuer credit ratings to CGMD. + The stable outlook is aligned with that on Citigroup's core operating subsidiaries....

Research Update