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Deutsche Bank Has Some Debt Cut by Moody’s to a Step Above Junk

Noah Buhayar, Claire Boston, Steven Arons
Deutsche Bank Has Some Debt Cut by Moody’s to a Step Above Junk

Deutsche Bank AG had the credit rating of one type of debt cut by Moody’s Investors Service after a change in German law last month paved the way for a more senior kind of borrowing. In a move that was widely anticipated, Moody’s downgraded the bank’s senior non-preferred debt to Baa3 -- the lowest investment grade -- from Baa2 and reclassified the bonds as “junior senior” debt. Deutsche Bank Chief Financial Officer James von Moltke, in a call with analysts on July 25, called the expected downgrade a “technical adjustment” as a result of the legislative change.