Deutsche Bank: Fitch cuts outlook to 'negative'
(CercleFinance.com) - Fitch Ratings has cut its outlook for Deutsche Bank's credit ratings from "stable" to "negative," citing the execution risk the German bank is facing in implementing its restructuring.
Although the credit-rating agency has cut Deutsche's outlook, it confirmed the bank's existing rating of "BBB+". All other debt ratings have also been confirmed.
In a statement, Fitch said failure to achieve targets, stabilise earnings and further strengthen risk controls would put the bank's business model and management's ability to execute the strategy into question and would likely result in a downgrade.
The news comes after results of the Federal Reserve's 2018 stress tests showed that even in a severely adverse economic scenario, Deutsche Bank's Common Equity Tier 1 capital would comfortably exceed the regulatory minimum of 4.5%.
It seems that investors have decided to focus on the latter news this morning in Frankfurt, as Deutsche Bank shares are currently up 1.2%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Although the credit-rating agency has cut Deutsche's outlook, it confirmed the bank's existing rating of "BBB+". All other debt ratings have also been confirmed.
In a statement, Fitch said failure to achieve targets, stabilise earnings and further strengthen risk controls would put the bank's business model and management's ability to execute the strategy into question and would likely result in a downgrade.
The news comes after results of the Federal Reserve's 2018 stress tests showed that even in a severely adverse economic scenario, Deutsche Bank's Common Equity Tier 1 capital would comfortably exceed the regulatory minimum of 4.5%.
It seems that investors have decided to focus on the latter news this morning in Frankfurt, as Deutsche Bank shares are currently up 1.2%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.