OREANDA-NEWS. August 1, 2012. On 25 July 2012, the rating agency Moody’s Investors Service changed the outlook for KfW's long-term credit rating from "stable" to "negative". However, the long-term rating of KfW remains unchanged with the top-grade Aaa. The move by Moody's immediately follows the rating announcement on 23 July 2012, in which Moody's placed the outlook for the rating of the Federal Republic of Germany on "negative". The change of KfW's ratings outlook was to be expected, as it is closely linked to Germany's rating due to the Federal Government guarantee for all KfW bonds and notes. Therefore, Moody's also justified its ratings announcement regarding KfW solely on the ratings announcement regarding Germany; in other words, there are no reasons specific to KfW that led Moody's to take this step.

A negative outlook means that in the next 12 to 18 months Moody's will review the rating of KfW for a possible downgrade.

We do not expect Moody's negative outlook to lead to any significant changes to the framework conditions for KfW's funding, as KfW still belongs with its rating to one of the few bond issuers in the world with the best rating.

KfW's short-term rating is not affected by this ratings announcement and continues to be assessed by Moody's with the top rating P-1. The top ratings at Standard & Poor's and Fitch remain unchanged for both Germany and KfW (Standard and Poor's with AAA / A-1+ and Fitch with AAA / F-1+) and each have been assessed a stable outlook.