[0] S&PCORRECT: Allianz, Dresdner Bk on Watch Neg.Business Editors (Editor's Note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : In a press release dated March 30, 2001, the CreditWatch implications of the short-term ratings of Dresdner Bank AG and its related entities were incorrectly stated. The short-term ratings are placed on CreditWatch with negative implications.) LONDON--(BUSINESS WIRE)--Standard & Poor's CreditWire April 12, 2001--Standard & Poor's today placed on CreditWatch with negative implications the long-term ratings on Munich-based Allianz AG and various related entities. At the same time, Standard & Poor's placed on CreditWatch with developing implications the long-term ratings on Dresdner Bank Dresdner Bank AG is one of Germany's largest banking corporations and is based in Frankfurt. History 19th century Dresdner Bank was established on 12 November 1872 through the conversion of financial institution Michael Kaskel. AG and related entities. The short-term ratings on Dresdner Bank were placed on CreditWatch negative (See list below.) These rating actions are in response to yesterday's confirmation by both groups that they are in strategic talks regarding the creation of an integrated financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. group. At the same time, the 'A-1'-plus short-term ratings on Allianz units were affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. . Allianz would benefit from linking up with Dresdner with regard to its position in asset management and retail funds, and its asset quality. Allianz already ranks among the top-eight asset managers worldwide, with funds under management of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 700 billion. Dresdner manages almost EUR300 billion of funds and so would considerably boost the size and prominence prominence /prom·i·nence/ (prom´i-nins) a protrusion or projection. frontonasal prominence of Allianz Asset Management, as well as broadening its skill set. Furthermore, Dresdner subsidiary Deutscher Investment Trust is one of the leading German mutual fund managers and would enhance Allianz's existing plans to build a significant presence in retail financial services in Germany and other European markets. If Allianz were to acquire Dresdner, it is expected that it would dispose of dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. several of its large shareholdings in German financial and industrial companies, thereby improving the quality of Allianz's asset portfolio. Offsetting these benefits, however, Dresdner's operating performance, market position, and capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. are all weaker than those of Allianz. In a combined group, Dresdner would constitute about one-third, based on estimated 2000 earnings. Consequently, the rating profile of a combined group would likely be weaker than that of Allianz currently. Moreover, any goodwill paid for Dresdner, together with the capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. of the banking operations, would dilute di·lute v. To reduce a solution or mixture in concentration, quality, strength, or purity, as by adding water. adj. Thinned or weakened by diluting. Allianz's capital base substantially, unless sufficient fresh equity capital were raised to cover this. Therefore, if such a transaction takes place, the triple-'A' counterparty Counterparty The other participant, including intermediaries, in a swap or contract. credit and insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. financial strength ratings on Allianz would probably be lowered. Dresdner is already an important distributor of Allianz life and pensions products in many parts of Germany, and its significance would increase considerably if the two groups were to amalgamate. Furthermore, Allianz is keen to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. from insurance into broader financial services. Consequently, if such a transaction were to proceed, then Dresdner would be regarded as strategically important to Allianz and its rating could be raised to reflect implicit support from Allianz. The final rating outcomes will, to some extent, depend on the proposed format and speed of the integration plans and the proposed legal and management structures. The ratings on all parties will be finalized See finalization. either when a transaction is completed, or when it becomes clear that such a transaction is not going ahead. In the latter circumstance Circumstance or circumstances can refer to:
tr.v. im·paired, im·pair·ing, im·pairs To cause to diminish, as in strength, value, or quality: an injury that impaired my hearing; a severe storm impairing communications. Dresdner's franchise and risk profile, which already suffered from the failed merger attempts with Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank AG and Commerzbank AG in 2000, Standard & Poor's said.--CreditWire RATINGS PLACED ON CREDITWATCH WITH NEGATIVE IMPLICATIONS Allianz AG Long-term counterparty credit AAA Financial strength AAA Senior unsecured debt AAA Allianz Versicherungs AG Frankfurter Vers. AG Bayerische Versicherungsbank AG Vereinte Versicherung AG Allianz Lebensversicherungs AG Vereinte Lebensversicherung AG Vereinte Krankenversicherung AG AGF - Assurances Generales de France Vie AGF - Assurances Generales de France Incendie Accidents Reassurances Transport AGF - Assurances Generales de France Marine Aviation Transport (AGF-MAT) R.A.S. - Riunione Adriatica di Sicurta SpA Allianz Elementar Versicherungs - AG Allianz Elementar Lebensversicherungs AG Allianz Insurance Co. Allianz Underwriters Insurance Co. Allianz Life Insurance Co. North America Preferred Life Insurance Co. of NY Counterparty credit AAA Financial strength rating AAA Allianz Finance B.V. Senior unsecured debt (Gtd: Allianz AG) AAA Allianz Finance II B.V. Senior unsecured debt (Gtd: Allianz AG) AAA AGF - Assurances Generales de France Counterparty credit AA+ Junior subordinated debt AA- Dresdner Bank AG Short-term counterparty credit A-1+ Short-term debt A-1+ Commercial paper A-1+ Short-term CD program A-1+ Dresdner U.S. Finance Inc. Short-term counterparty credit A-1+ Short-term CD program A-1+ Commercial program* A-1+ *Support from Dresdner Bank AG (Cayman Islands branch) Dresdner Finance B.V. Short-term debt* A-1+ *Guaranteed by Dresdner Bank AG RATINGS PLACED ON CREDITWATCH WITH DEVELOPING IMPLICATIONS Dresdner Bank AG Long-term counterparty credit AA- Senior unsecured debt AA- Long-term CD program AA- Subordinated debt A+ Dresdner Capital LLC I Dresdner Capital LLC II Dresdner Capital LLC III Dresdner Capital LLC IV Dresdner Funding Trust I Dresdner Funding Trust II Dresdner Funding Trust III Dresdner Funding Trust IV Junior suborbdinated debt A Dresdner Finance B.V. Senior unsecured debt AA- (Gtd: Dresdner Bank AG) Subordinated debt A+ (Gtd: Dresdner Bank AG) RATINGS AFFIRMED Allianz AG Short-term counterparty credit A-1+ Commercial paper A-1+ AGF - Assurances Generales de France Short-term counterparty credit A-1+ Allianz of America, Inc. Short-term counterparty credit A-1+ Commercial paper A-1+ AGF - Assurances Generales de France CASH (SNC) Commercial paper A-1+ (Guaranteed by AGF - Assurances Generales de France) |
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