Moody’s Downgrades Nord/LB Ratings

The ratings of the German shipping bank Norddeutsche Landesbank GZ (NORD/LB) and its subsidiary Deutsche Hypothekenbank (Actien-Gesellschaft) (Deutsche Hypo), including the banks’ long-term deposit ratings, have been downgraded to A3 from A2, according to Moody’s rating agency.

Furthermore, their long-term debt ratings and NORD/LB’s issuer rating were downgraded to Baa1 from A3, as well as both of their short-term debt and deposit ratings to Prime-2 from Prime-1.

This follows Moody’s downgrade of NORD/LB’s Baseline Credit Assessment (BCA) to ba3 from ba2 and of its Adjusted BCA to ba1 from baa3.

Moody’s said that the rating outlooks on NORD/LB’s issuer rating and on both entities’ debt and deposit ratings are negative.

These rating actions conclude the rating review for NORD/LB and its affiliates opened on June 1, 2016, which were prompted by NORD/LB and BremerLB reporting losses in the first half of 2016 amid an extended difficult trading environment for the global shipping industry, as well as by NORD/LB’s announcement that it will acquire full ownership of BremerLB within the next months.

“NORD/LB’s solvency will remain vulnerable to an extension of the current period of depressed freight rates for shipping firms globally even as it has started a process of de-risking and of bolstering problem loan provisioning levels,” Bernhard Held, a Moody’s Vice President, said.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Oct 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

Ocean Energy Europe Conference & Exhibition 2018

The annual Ocean Energy Europe Conference & Exhibition is the meeting point for the whole ocean energy sector…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

CWC World LNG & Gas Series: 10th Asia Pacific Summit

Bringing together the key LNG buyers and sellers from across the globe, the Summit provides…

read more >

Offshore Energy Exhibition & Conference (OEEC)

It is unique in bringing together the oil and gas, offshore wind and marine energy industry…

read more >