Deutsche Bank's S&P Rating Put on Credit Watch After CEO Change

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Deutsche Bank's sudden change in chief executive could prolong the lender's restructuring, ratings agency Standard & Poor's (S&P) said as it placed the bank on "credit watch negative" late on Thursday. Last weekend retail banking specialist Christian Sewing replaced John Cryan as Deutsche's CEO, raising the prospect of radical change at Germany's flagship lender, which has been slower than rivals to reform after the financial crisis, the International New York Times reported on a Reuters story. S&P said the placing of the bank's "A-" long-term issuer credit rating on credit watch with negative implications reflected its view that the restructuring could now take longer and cost more than current expectations. The agency affirmed its ratings on Deutsche Bank's subordinated debt issues. S&P said it believed that Sewing and the leadership team had the expertise to carry out the bank's restructuring, adding that it would be better placed to assess the management's strategy in coming weeks once Sewing's priorities are known. Read more. (Subscription required.)