S&P might lower Deutsche Bank

S&P said it placed its A- long-term issuer credit rating on Deutsche Bank AG and its core subsidiaries on CreditWatch with negative implications.

At the same time, the agency affirmed the A-2 short-term issuer credit rating and the trAAA/trA-1 Turkish national scale ratings on Deutsche Bank.

The agency also affirmed the issue credit ratings on all the hybrid instruments issued or guaranteed by the bank, including the BBB- rating on the bank's senior subordinated debt instruments.

S&P said the CreditWatch placement reflects a view that Deutsche Bank might be subject to a longer lasting and/or significantly more costly restructuring of the business model than what the agency currently expects.

“This could lead to deeper underperformance compared with peers, from a financial and customer franchise point of view,” the agency said in a news release.

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