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S&P acts on German banks, subsidiaries

S&P Global Ratings on March 28 took ratings actions on Commerzbank AG, Deutsche Bank AG, Deutsche Pfandbriefbank AG, UniCredit Bank AG, and some of those banks' subsidiaries.

The rating agency upgraded the long-term counterparty credit ratings of Commerzbank and Deutsche Bank, as well as Commerzbank unit mBank SA and Deutsche units Deutsche Bank Trust Corp., Deutsche Bank Trust Co. Delaware, Deutsche Bank Trust Co. Americas, Deutsche Bank National Trust Co., Deutsche Bank Luxembourg SA, Deutsche Bank SpA, Deutsche Bank SAE, DB UK Bank Ltd. and Deutsche Bank Securities Inc., to A- from BBB+, with a negative outlook assigned to the ratings.

The agency upgraded Deutsche Pfandbriefbank AG's long-term counterparty credit rating to A- from BBB, with a negative outlook assigned. The agency also upgraded its senior unsecured rating to A- from BBB and downgraded the subordinated senior unsecured rating to BBB- from BBB. It affirmed the bank's short-term rating of A-2.

At the same time, the agency affirmed the BBB/A-2 long- and short-term counterparty credit ratings of two units of UniCredit SpA, UniCredit Bank AG and UniCredit Luxembourg SA, with a developing outlook.

S&P removed the counterparty credit and issue ratings of all these banks from CreditWatch positive, where they have been since Dec. 15, 2016.

The ratings actions, which conclude S&P's industrywide review of German bank senior unsecured debt, reflect an improvement in the banks' additional loss-absorbing capacity buffers protecting senior creditors, following a retroactive change in German law introduced in January. The ratings also factor in ongoing restructuring, any implications from possible increased economic risk in Germany, and other group-related aspects.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.