Fresh blow for Christian Sewing as S&P Global cuts Deutsche Bank rating
The downgrade leaves the bank’s credit rating three notches above junk, with a stable outlook
Frankfurt — Deutsche Bank’s new CEO, Christian Sewing, suffered a fresh setback in his efforts to reinvigorate Europe’s largest investment bank as S&P Global Ratings cut the lender’s credit rating. "Deutsche Bank’s updated strategy envisages a deeper restructuring of the business model than we previously expected," S&P said on Friday, lowering the rating by one notch to BBB+, the third-lowest investment grade. While management is taking "tough" actions to restore profitability, the bank "appears set for a period of sustained underperformance compared with peers, many of whom have now finished restructuring." The decision could raise the bank’s cost of doing business, increasing the stakes for Sewing, who replaced John Cryan in April with a mandate to accelerate a plan to refocus on Deutsche Bank’s European home market and away from Wall Street. S&P had initiated its review after Sewing’s appointment, saying the repeated changes of leadership at the bank posed questions about its lon...
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