German banks hit with downgrades due to eurozone crisis
The most prominent bank downgraded was Commerzbank AG, Germany’s second-biggest. Its long-term rating was cut to A3, with a negative outlook, from A2.
Also hit were DekaBank and DZ Bank, as well as three of Germany’s public-sector regional banks - Landesbank Baden-Wuerttemberg, Norddeutsche Landesbank and Landesbank Hessen-Thueringen.
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Hide AdThe German unit of Italy’s UniCredit was downgraded to A3, with a negative outlook, from A2.
Moody’s said its move was driven in part by “the increased risk of further shocks emanating from the euro area debt crisis in combination with the banks’ limited loss-absorption capacity.”
Germany’s economy, Europe’s biggest, remains robust as other eurozone countries struggle.