The credit rating agency Moody’s has cut Deutsche Bank’s credit rating saying the bank’s restructuring plan is facing “substantial operating headwinds”. Deutsche Bank is the the largest bank in Germany ranked by total assets.
Thus, Moody’s cut the rating for Deutsche Bank’s unsecured senior debt to Baa2 from Baa1. It also cut the lender’s long-term deposit rating one notch from A2 to A3. However, the rating agency said that, once “substantial progress” had been made in carrying out Deutsche Bank’s five-year restructuring plan, it would have “a reduced risk profile, more balanced earnings and operate with more conservative levels of leverage”, and that is why its ratings outlook is “stable”.
