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Moody's assigns ratings to Goldman Sachs' German unit

Moody's on Sept. 7 assigned first-time ratings to Germany-based Goldman Sachs AG, including A1/Prime-1 long- and short-term deposit and issuer ratings, with a negative outlook on the long-term ratings.

The agency also assigned the Goldman Sachs Group Inc. unit "baa1" baseline and adjusted baseline credit assessments, Aa3(cr)/P-1(cr) long- and short-term counterparty risk assessments and Aa3/Prime-1 long- and short-term counterparty risk ratings.

Moody's said the long-term counterparty risk assessment and rating incorporate one notch of uplift for U.S. government support, reflecting the agency's view that Goldman Sachs Group's systemic importance primarily derives from its high degree of interconnectedness with other global systemically important banks as well as its role as a significant derivatives counterparty.

The negative outlook on the German unit reflects Moody's same outlook on the other rated operating subsidiaries of the group. The outlook also reflects the above-average loan growth pursued by the group over the recent past, as well as the group's loss of market share in its sales and trading businesses in 2016 and 2017.