Creditreform Rating has affirmed the unsolicited corporate issuer rating of Deutsche Bahn AG as well as the unsolicited corporate issuer rating of Deutsche Bahn Finance GmbH at AA-. Creditreform Rating has also affirmed the unsolicited corporate issue rating of the long-term local currency senior unsecured notes issued by Deutsche Bahn Finance GmbH at AA-. These issues are included in the list of ECB-eligible marketable assets, which can be found on the ECB's website. The outlook for the ratings remains stable. For more details regarding the ratings, please refer to our update report below.
Creditreform Rating has adjusted the unsolicited corporate issuer rating of Deutsche Bahn AG to AA-, from AA. The outlook was changed from negative to stable. The main reason for the rating adjustment is the negative impact of the COVID-19 pandemic, which has led to a significant drop in revenue and earnings and consequently to a deterioration in the financial ratio analysis for the 2020 financial year. While rail freight transport has stabilized again, the recovery effect in rail passenger transport has so far remained muted, with the result that profitability and internal financing strength continue to be under pressure in the current fiscal year. We see this as a dampening rating factor, particularly against the backdrop of the recent sharp rise in debt but also the future financial challenges in the wake of the strategic focus on "strengthening rail transport". The close relationship with the Federal Republic of Germany and thus the classification as a government-related company continue to be decisive for the adjusted but still high rating level. We continue to assume that the owner, the Federal Republic of Germany, will provide Deutsche Bahn AG with financial support in the event of a crisis. For all other rating factors, please refer to the current update report.
Creditreform Rating has confirmed the unsolicited corporate issuer rating of Deutsche Bahn AG with AA and changed the outlook from stable to negative.
Based on the slightly worsened financial figures for the 2019 financial year, the close relationship to the Federal Republic of Germany, and as a result the classification as a government-related company continues to be decisive for the high rating level. We continue to assume that the owner, the Federal Republic of Germany, will support Deutsche Bahn AG financially in a crisis scenario. The negative outlook is primarily due to the pandemic and effects resulting from the current and expected economic situation, which could have a considerable negative impact on the business and earnings development as well as the Group's internal operating financing power in the current 2020 financial year and could further increase its debt-level.
Creditreform Rating has updated the unsolicited corporate rating of Deutsche Bahn AG.