Moody's cut German banking outlook to negative from stable as profitability weakens
Deposits are proving to be costly for German banks
Moody's just revised their outlook for the German banking industry to 'negative' from 'stable', as they expect German banks' profitability and overall creditworthiness to weaken in a low interest rate environment.
It's not exactly blockbuster news but again, it just reaffirms the fact that Germany is resigned to some troubling times ahead as the economy continues to slow down further. In that regard, the lack of fixed income alternatives is also hurting banks.