The rating agency downgraded the bank’s long-term issuer default rating (IDR) to BBB from BBB+.
Sunday 09, June 2019
(Bloomberg) --Deutsche Bank’s credit rating was cut by Fitch Ratings, citing the lender’s lack of progress in improving operations.
Fitch stated that the downgrade of Deutsche Bank reflects its continued difficulty and limited progress in improving its profitability and stabilising its business model.
The bank has a total of EUR 145.7 billion ($165.2 billion) of public bonds and loans outstanding. Once among Europe’s dominant banks, Deutsche Bank’s market value has plunged as the company has been buffeted by multiple management changes, restructurings that have not worked and failed merger talks with Commerzbank.
In a statement, Deutsche Bank acknowledge the challenges identified by Fitch, adding that they align with the lender’s areas of focus.