...+ Deutsche Bank AG announced on Sept. 15, 2016 that it is in negotiations with the U.S. Department of Justice (DoJ) to settle civil claims related to issuance and underwriting of residential mortgage-backed securities (RMBS) in 2005-2007. + In our existing capital and earnings projections, we assume that Deutsche Bank's aggregate litigation charges will exceed the 5.5 billion provisions and 1.7 billion contingent liability it reported as at June 30, 2016. + Based on settlements already reached by peers, we assume in our projections that Deutsche Bank's settlement in respect of the RMBS litigation will be materially smaller than the DoJ's $14 billion opening negotiating position. + We are affirming the ratings based on our view that Deutsche Bank has sufficient financial flexibility to absorb our assumed RMBS settlement at the current rating level. + We remain of the view that Deutsche Bank's main challenge is the restructuring of its business model to achieve stronger earnings and capital,...
