Moody’S Has Downgraded Hsh Nordbank Ag’S Ratings

Moody’S Has Downgraded Hsh Nordbank Ag’S Ratings

Moody’s Investor’s Service has downgraded HSH Nordbank AG’s hybrid instrument ratings to C(hyb) from Ca(hyb).

While Moody’s announcement concluded the rating review for downgrade for the instruments (HSH, deposits Baa3 review for upgrade/senior unsecured Baa3 review for upgrade, Baseline Credit Assessment b3 review for upgrade) initiated on 28 February, the service underlined that all other ratings of HSH were unaffected and remain on review for upgrade.

Following the announcement, Moody’s stated that the downgrade of HSH’s hybrid ratings “reflects higher loss expectation” and added: “The downgrade of HSH’s hybrid ratings reflects Moody’s expectation that the present value of the economic loss to investors in these instruments will exceed 65% of their par value and fall in the range of losses that would be commensurate with a C(hyb) rating, compared with a Ca(hyb) and 35%-65% loss expectation previously.”