Fitch Ratings cuts Deutsche Bank’s credit rating

epa03912778 An exterior view of the offices of Fitch Ratings in New York, New York, USA, 16 October 2013. Democratic and Republican Senate leaders on 16 October announced a deal to raise the US debt limit ahead of the 17 October deadline and reopen the federal government, which has been closed since 01 October. The uncertainty over the way forward earlier on 16 October had prompted Wall Street ratings agency 'Fitch Ratings' to warn that the country's AAA credit was at risk. EPA/ANDREW GOMBERT

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Fitch Ratings has cut Deutsche Bank’s credit rating, heaping further pressure on the German lender after shares slid to a new all time low this week.

Fitch on Friday evening said that it lowered Deutsche’s rating to BBB, or two notches above junk, on concerns over the bank’s ability to execute the restructuring necessary. The downgrade brings Fitch’s view more in line with the assessment of rival rating agency Standard & Poor’s (BBB+). Moody’s rating is higher at A3, or 4 notches above junk.

“The downgrade of Deutsche Bank reflects its continued difficulty and limited progress in improving its profitability and stabilising its business model,” Fitch said in a statement, adding that unlike global rivals, Deutsche’s retail banking operations in Germany are not strong enough to offset the headwinds.

Via Financial Times 

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