DHB move satisfies Fitch, but the damage is done

Fitch yesterday (Tuesday) afternoon reacted to Monday’s transfer of Düsseldorfer Hypothekenbank to the Association of German Banks’ (BdB) guarantee fund by upgrading its long term rating from BBB- to A-. However, some German analysts said that DHB’s fall had already damaged the Pfandbrief’s image and reports of further writedowns at HVB ensured that the sector remained nervous.