FINANCIAL INSTITUTIONSISSUER COMMENT 10 JUNE 2015DEUTSCHE BANK AG (DB)Moodys Senior Unsecured Rating A3Moodys Outlook NEGBond-Implied Rating Aa3CDS-Implied Rating Baa2EDF-Implied Rating B1As of 6/8/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Market Signals ReviewDeutsche Bank AG: Bond-Implied Rating Rises After Management Shift The market signals for Deutsche Bank remain strong, highlighting the companys financial solidity. A change in the companys CEO was announced on June 7, and the bond-implied rating rallied Monday by one notch from A1 to Aa3.The resignation of the co-chief executives of Deutsche Bank is a development that throws open to question the future direction of one of the worlds largest banks. Anshu Jain, a former investment-banking executive, will step down at the end of June. The other co-CEO, Jrgen Fitschen, plans to leave next May following Deutsche Banks annual shareholder meeting. They will be replaced by John Cryan, a former UBS AG finance chief.FIGURE 1. DEUTSCHE BANK: MOODYS AND MARKET-IMPLIED RATINGS, LAST 90 DAYS (DAILY DATA)MOODY'S ANALYTICS FINANCIAL INSTITUTIONS2 10 JUNE 2015 MARKET SIGNALS REVIEW : DEUTSCHE BANK AG: BOND-IMPLIED RATING RISES AFTER MANAGEMENT SHIFTDBs bond-implied rating was Aa3 90 days ago (Figure 1). Since then it fluctuated between A1 and Aa3 on multiple occasions. The most recent rise from A1 to Aa3 occurred on June 8, after the unexpected management change was digested by the markets.The CDS-implied rating was Baa1 three months ago. In mid-March it fell to Baa2 and has remained unchanged.The EDF'-implied rating rose over the last three months from B2 to B1. It did not shift on the first two trading days following the announcement of new leadership at Deutsche...
