Moody's on June 2 downgraded Argentina-based Deutsche Bank SA's global scale and national scale local currency deposit ratings of B1 and Aa2.ar to B3 and Baa1.ar, respectively, following the central bank approval of the bank's sale to Banco Comafi SA.
The new ratings reflect the B3 rating of the shareholder, Moody's said. "Although we expect Deutsche Argentina's new owner will be willing to support the bank as necessary until the merger is complete, its ability to do so is much more limited than was that of the rating of the bank's former parent, whose baseline credit assessment is five notches higher," the rating agency added.
In addition, Moody's revised the global scale rating outlook to positive, in line with the positive outlooks on the ratings of Banco Comafi and the Argentine sovereign, while the national scale ratings remain stable.
The rating agency noted that although Deutsche Bank discontinued some businesses since the announcement of the sale, it has nevertheless continued to post good earnings.