May. 24th, 2016
Submitted by Tyler Durden on 05/23/2016 17:49 -0400
While not quite on the level of last week's Berenberg downgrade (to Sell) which warned that DB's problems are now "insurmountable", shortly after the close Moody's surprised the market with a downgrade that may have substantial repercussions on the funding costs (and perhaps viability) of the largest German, and European, lender.
Shortly after the market close, the rating agency decided to pile some more pain on the misery that has befallen Germany's largest lender (who just today admitted it had rigged stocks in addition to seeing yet another MBS probe unveiled against it), when it downgraded the bank's credit ratings across the board as follows: Senior debt to Baa2, or just two notches above junk, Long term deposits to A3 and counterparty risk assessment to A3.
Moody's also downgraded Deutsche Bank's short-term ratings and short-term counterparty risk assessments were also downgraded to Prime-2 from Prime-1 and to Prime-2(cr) and Prime-1(cr).( Read more... )
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Remember that Deutsche Bank - Lehman analog?
With every additional downgrade by the likes of Berenberg or Moody's, the two lines will converge ever closer.