...Restructuring Weighs on Earnings: Deutsche Bank AG's (DB) Long-Term Issuer Default Rating (IDR) is driven by the bank's intrinsic strength, as captured by its Viability Rating (VR). DB's Long-Term IDR and VR reflect our view that the restructuring of the bank will have a greater negative impact on its earnings than we had previously expected. As two thirds of the planned EUR3.5bn in restructuring and severance will be incurred by end-2016, we expect DB's earnings to be weaker than peers until at least end-2016. Execution Risks Limit Upside: While positive in the long run, DB's plan to reduce operating expenses by EUR3.8bn by deconsolidating Deutsche Postbank AG, exiting products and countries and upgrading infrastructure entails significant execution risks. These relate to the bank's ability to deliver cost savings, deal with operational challenges in streamlining processes and grow revenue in the remaining businesses to offset the impact of sales and exits. Fitch Ratings expects DB to...
