S&P revises Deutsche Bank to negative

S&P said it revised the outlook on Deutsche Bank AG to negative from stable.

The BBB+/A-2 global scale, cnA+ Greater China regional scale and trAAA/trA-1 Turkey national scale issuer credit ratings were affirmed.

The outlook on certain Deutsche Bank branches and subsidiaries was revised to negative from stable. The ratings on these entities were affirmed.

In addition, the agency affirmed the issue ratings on Deutsche Bank AG's long-term senior unsecured debt at BBB+, short-term senior unsecured debt at A-2, dated nondeferrable Tier 2 regulatory capital instruments at BB+ and perpetual Tier 1 instruments at B+.

S&P said the outlook revision reflects its view that the unfavorable operating environment poses particular challenges to Deutsche Bank as it implements its 2016-2020 strategic plan (known as Strategy 2020).

Although market conditions may recover somewhat from the weak first quarter of 2016, ultra-low interest rates and generally subdued client trading activity may persist for the foreseeable future. These pressures affect the entire sector but the agency believes they are particularly unhelpful for Deutsche Bank as it seeks to strengthen capital and maintain its franchise while fundamentally restructuring its business model and balance sheet.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.