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Fitch Cuts Deutsche Bank Outlook

  • Fitch’s pessimism on profit outlook an echo of S&P downgrade
  • Ratings group says 10% return on equity target “challenging”
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Photographer: Krisztian Bocsi/Bloomberg

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Deutsche Bank AG had the outlook for its credit rating lowered to negative from stable by Fitch Ratings, which cited risks tied to the German lender’s turnaround plan.

The move “reflects the substantial execution risk Deutsche Bank faces in implementing its restructuring and Fitch’s view that failure to strengthen its business model would result in the bank’s downgrade,” the rating company said in a statement late Thursday. It confirmed the lender’s BBB+ long-term issuer default rating and all other debt ratings.