Credit protection for German financial institutions remains stable

The cost of credit protection for German financial institutions, including Deutsche Bank, Dresdner Bank and insurer Allianz, remained relatively stable today, despite negative rating outlook changes from Moody’s.

Moody's yesterday changed the outlook for its ratings on Allianz Group, and its subsidiary Dresdner Bank, to negative from stable following the announcement of disappointing third-quarter 2002 operating results. Yesterday, Moody's also maintained the negative ratings outlook on German banks. But the rating agency also said the renewed focus on profitability and strategic refocusing among German banks means that the country’s banks will not undergo a systemic crisis.

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