The rating of Deutsche Hypothekenbank AG and its capital instruments is withdrawn due to the merger with Norddeutsche Landesbank.
Creditreform Rating AG has revised its rating methodology for the rating of banks (Bank Ratings). Henceforth, only the revised version of the rating methodology ("Version 3.0") will be applied with the end of the consultation process. In addition, Creditreform Rating AG introduced the new sub-methodology Institutional Protection Scheme Banks. Hence, all current ratings of bank capital and unsecured bank instruments will be reviewed as part of our current monitoring and receive therefore the rating supplement "watch". Our revised rating methodologies can be found at www.creditreform-rating.de.
Creditreform Rating has revised its outlook on the Deutsche Hypothekenbank AG to stable from watch negative and affirmed the rating of Deutsche Hypothekenbank AG at BBB-. In addition, Creditreform Rating has confirmed the rating of Tier 2 at B+ and the rating of Preferred Senior Unsecured Debt at BBB-. For more details regarding the rating, we refer to our rating report on our homepage.
Creditreform Rating has set the rating of all valid bank ratings and bank issues to watch negative due to the currently not assessable impact of the Corona Crisis. Not affected by this rating action are government related banks. We refer to the free available Monitoring Report for a more detailed explanation.
The planned measures of capital strengthening are responsible for the decision to set the rating to "watch". Following the EU Commission's decision to allow shareholders to strengthen their capital, it remains to be seen how the regulatory capital ratios will develop after the capital increase. After a possible implementation of the capital increase measures and the publication of the audited annual financial statements for fiscal year 2019, the addition "watch" can be removed again.
Creditreform Rating has set the rating of Deutsche Hypothekenbank AG to BBB-, with stable outlook. Creditreform Rating has also determined the ratings of the debt classes as follows. The rating of Tier 2 was set to B+ and the rating of the Senior Unsecured to BBB-.