S&P revises DVB Bank view to positive

S&P said it revised its outlook on DVB Bank SE to positive from negative.

Concurrently, S&P affirmed the BBB long-term issuer credit ratings, the BBB- ratings on the bank’s senior subordinated debt and the BB+ ratings on its non-deferrable subordinated debt.

“The outlook revision follows our review of DVB’s group status to its sole owner DZ BANK and its ultimate parent, the Cooperative Banking Sector Germany. While DVB remains in run-off, we think that DVB’s strategic relevance to its owner will become clearer within the next two years. DVB might continue to sell loan portfolios; however, if we see a much-diminished risk that DZ BANK would sell DVB itself, this would likely bolster our view of the future likelihood, amount and timeliness of support from its shareholders,” S&P said in a press release.

Last year, DVB sold two of its core business lines, which S&P said makes DVB less attractive for strategic investors. “Given the current fragile economic outlook, we see increased doubt that DZ BANK would receive an acceptable offer for DVB,” S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.