Deutsche Bank DOWNGRADED: Germany’s lender struggling to win clients back, says Fitch
DEUTSCHE Bank’s credit rating has been chopped, as Germany’s biggest lender struggles to win clients after its well publicised troubles last year.
By LANA CLEMENTS
Express.co.ukFri, Sep 29, 2017
Top rating agency Fitch downgraded Deutsche Bank’s long-term rating to BBB+, its third-lowest investment grade.
Fitch said the German bank’s long-term growth plans were failing, as chief executive John Cryan desperately tries to shore up Deutshce Bank’s prospects.
The chief executive had been trying to draw a line under a disastrous 2016, in which Deutsche’s share price plunged amid giant fines for misconduct.
But Fitch has placed little faith in Mr Cryan’s growth and restructuring plans, revealed earlier this year.
Analysts at the ratings agency said: “We no longer expect revenue to demonstrate any clear signs of franchise recovery this year, and we expect necessary further restructuring costs to continue to erode net income.”
The rating agency put the group’s outlook as stable.
But the bank will take longer than expected to claw back the market share it lost last year, while low interest rates are also a big problem for Deutshce, Fitch said.
Analysts wrote: “The scale and scope of what it has to do, plus strategic revisions earlier this year, mean that Deutsche Bank has further to go to complete its business restructuring than any of the other” global universal banks.
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