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Moody`s affirmed rating, lowers rating of hybrid bonds by one notch - outlook remains unchanged

Moody`s affirmed final rating of DB AG (“Aa1”) and outlook (“negative”). BCA and as a result the rating of the hybrid bonds lowered by one notch. Short-term rating unchanged.

(Berlin, October 20, 2020) The rating agency Moody`s announced today, that it affirmed the “Aa1” long-term rating assessments of Deutsche Bahn AG (DB AG) and the outlook (“negative”). The slight lowering of the stand-alone rating (Baseline Credit Assessment; BCA) from "a1" to "a2" was compensated by an expected stronger Government support.

The BCA rating revision reflects Moody's view of a weak development of key figures and the expectation that a sustained recovery is due to current challenges not to be expected in the short term. The rating of hybrid bonds is according to Moody's rating methodology linked to the BCA. Hence the rating of the hybrid bonds issued last year by DB Group`s financing company Deutsche Bahn Finance GmbH was also revised, from "A2" to "A3". The short-term rating of DB AG is unchanged (“P-1”). 

The unchanged negative outlook is in Moody's view among other things the result of uncertainties regarding the timing of the implementation of the capital measures announced by the German Government due to the still ongoing EU Commission approval process and due to corona-related uncertainties. 

The release of Moody`s and more details regarding the ratings of DB AG may be found under rating.

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