Moody's upgrades Deutsche Postbank Funding Trust I and III
Frankfurt am Main, January 05, 2022 -- Moody's Investors Service (Moody's) has today upgraded the ratings of Deutsche Postbank Funding Trust I (ISIN DE000A0DEN75) and Deutsche Postbank Funding Trust III (ISIN DE000A0D24Z1), which are funding vehicles of Deutsche Bank AG (DB; Baseline Credit Assessment baa3, Senior Unsecured A2 positive), to Ba2 (hyb) from Ba3(hyb).
The rating action was driven by a change in the legal insolvency rank of these instruments under German law, following the end of their grandfathering as regulatory capital effective 1 January 2022, which prompted a reassessment of the loss severity for these hybrid instruments under Moody's Advanced Loss Given Failure (LGF) analysis applied to DB.
DB's ratings were unaffected by today's rating action.