Moody's downgrades raft of German banks

Moody's has downgraded the credit ratings of a number of German public-sector banks, saying there is a lower likelihood the German government will step in with a bailout.

Moody's added the downgrades, which focused on senior debt and deposit ratings of the banks, are due to the support for German public-sector banks becoming less certain. The downgrades come despite the German government announcing earlier this week it will reactivate its bank-rescue fund, giving the government the capability to recapitalise the country's banking system. The ratings agency added the strict conditions set out by the European Commission have also played their part in the downgrades, as this makes it difficult for banks to accept state aid. "The rating actions reflect ...