Moody’s Investor Service has cut the ratings of six German banks by one notch amidst growing concerns with regard to the continuing eurozone crisis. Ratings of DekaBank, DZ Bank AG, Norddeutsche Landesbank, Landesbank Hessen-Thueringen and Landesbank Baden-Wuerttemberg have been reduced by one notch. Likewise big economic powers are also facing the brunt. For instance, the rating of Commerzbank AG has also been reduced by one notch to A2 from A3.
The rating agency states that their recent rating actions have been an outcome of the increased risk of further shocks originating from the eurozone debt crisis coupled with the banks' limited loss-absorption capacity. Deutsche Bank is being reviewed before deciding whether the bank would require a cut or not.