Various Rating Actions Taken On Four Systemically Important German Banks On Improved Loss-Absorbing Capacity

OVERVIEW Due to a retroactive change in German law introduced in January 2017, we believe that four systemically important German banks--Commerzbank AG, Deutsche Bank AG, Deutsche Pfandbriefbank AG (PBB), and UniCredit Bank AG--now have significantly improved additional loss-absorbing capacity (ALAC) buffers protecting senior creditors. We've reviewed the documentation for each of these banks' long-term senior unsecured debt instruments that we rate, after placing our issue and issuer credit ratings on the banks on CreditWatch on Dec. 15, 2016. We have also considered other important rating drivers, such as ongoing restructuring, any implications from possible increased economic risk in Germany, and group-related aspects. As a result, we have raised by up to two notches or affirmed our long-term counterparty credit ratings

...OVERVIEW + Due to a retroactive change in German law introduced in January 2017, we believe that four systemically important German banks--Commerzbank AG, Deutsche Bank AG, Deutsche Pfandbriefbank AG (PBB), and UniCredit Bank AG--now have significantly improved additional loss-absorbing capacity (ALAC) buffers protecting senior creditors. + We've reviewed the documentation for each of these banks' long-term senior unsecured debt instruments that we rate, after placing our issue and issuer credit ratings on the banks on CreditWatch on Dec. 15, 2016. + We have also considered other important rating drivers, such as ongoing restructuring, any implications from possible increased economic risk in Germany, and group-related aspects. + As a result, we have raised by up to two notches or affirmed our long-term counterparty credit ratings on Commerzbank, Deutsche Bank, PBB, and UniCredit Bank, mainly reflecting stronger ALAC buffers, and removed the ratings from CreditWatch with positive implications....

Ratings Action