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