Deutsch Bank Ag credit rating was cut by Fitch Ratings, which cited the firm’s lack of progress in improving operations.
The bank’s long-term issuer default rating was downgraded to BBB from BBB+, Fitch said in a statement on Friday.
“The downgrade of Deutsche Bank reflects its continued difficulty and limited progress in improving its profitability and stabilizing its business model,” Fitch said. The bank has a total of 145.7 billion euros ($165.2 billion) of public bonds and loans outstanding, according to data compiled by Bloomberg.
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 haven’t worked and failed merger talks with Commerzabnk AG.
“We acknowledge the challenges identified by Fitch as they align with our own areas of focus,” Deutsche Bank said in a statement Friday. “Management is committed to growing our core business and improving profitability. We are pleased that Fitch acknowledges Deutsche Bank’s strong capitalization, funding, liquidity and asset quality.”
