Deutsche Bank May Be Cut by S&P on New CEO’s Strategy

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Deutsche Bank AG may be downgraded by S&P Global Ratings, which said the German bank’s leadership change may signal a “prolonged, deepened or more costly restructuring” that could weigh on the bank’s credit rating, Bloomberg News reported. The lender’s A- long-term rating is under review, S&P said in a statement late Thursday, while affirming its BBB- rating on the bank’s senior subordinated debt. Last weekend, the lender named Christian Sewing chief executive officer, ending John Cryan’s reign after less than three years as questions mount about the future direction of Europe’s largest investment bank. S&P said it aims to decide whether to cut Deutsche Bank’s rating at the latest by May, when it expects more details of Sewing’s plans. The full benefits of any restructuring may not be realized until 2020, S&P said. Read more.