German banks braced for ratings downgrade

Friday 25 June 2004 at 16:00

Germany's state banks face a dramatic increase in borrowing costs after most risk losing their coverted triple A ratings in the wake of next year's withdrawal of state backing. Fitch is expected to cut them all to a single A rating. S&P and Moody's are expected to be much harsher.

Fitch has indicated how much the loss of state guarantees will weaken Germany's state banks.