HVB downgrade forces spreads wider

S&P downgraded HVB's long-term debt ratings to A- from A, and its short-term ratings to A-2 from A-1, with negative outlook. The agency was concerned that a prolonged economic downturn could further weaken HVB’s business and risk profile, particularly through increased credit risk and depressed revenues.

Debt protection costs on another German bank, Commerzbank, widened from 110/130bp on Tuesday to 110/145bp today. Yesterday, S&P affirmed its A- counterparty credit rating on Commerzbank with

To continue reading...

You must be signed in to use this feature.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: