Deutsche Bank: Moody's affirms rating, outlook 'negative'
(CercleFinance.com) - Ratings agency Moody's affirmed Deutsche Bank's rating at "A3" with a "negative" outlook on Monday, after the German lender announced drastic plans to restructure its business.
"Accelerating the transformation of the bank, reducing higher-risk businesses that were constantly unable to earn acceptable returns considering their higher capital and leverage exposure consumption will be credit positive, if successfully executed," Moody's said in a statement.
The move is a positive step towards achievement of a "more balanced and sustainable" business model, the ratings agency also said.
However, its negative outlook indicates "there is no imminent upward pressure" on Deutsche Bank's ratings," it added.
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"Accelerating the transformation of the bank, reducing higher-risk businesses that were constantly unable to earn acceptable returns considering their higher capital and leverage exposure consumption will be credit positive, if successfully executed," Moody's said in a statement.
The move is a positive step towards achievement of a "more balanced and sustainable" business model, the ratings agency also said.
However, its negative outlook indicates "there is no imminent upward pressure" on Deutsche Bank's ratings," it added.
Copyright (c) 2019 CercleFinance.com. All rights reserved.