S&P Cuts Deutsche Bank Rating in Latest Blow for Sewing’s Revamp
- CEO says in response that financial strength ‘beyond doubt’
- Shares rebound from record low as S&P highlights liquidity
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Deutsche Bank AG’s new chief executive officer, 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.
S&P reduced the rating by one notch to BBB+, the third-lowest investment grade, citing “significant execution risk” after several management changes and strategy updates in past years. Shares of the lender rebounded from a record low as the credit rating company said Deutsche Bank has good capital and liquidity buffers.