Bad shipping loans at German banks to rise
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[HAMBURG] Germany's top shipping lenders, including Commerzbank AG and HSH Nordbank, face rising credit default risks next year as bad debt from clients struggling to emerge from the industry crisis mounts, according to Moody's Investors Service.
The eight banks under review, which had 105 billion euros (S$180.3 billion) in shipping loans in 2012, are increasing their valuation reserves as an "extended downward shipping cycle" will cause "rising problem loans", Moody's said in a report on Monday.
Almost three-quarters of the loans held by German banks are in "the three worst-hit segments - container ships, tankers and bulkers", Moody's said.
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