Outlooks On Various German Banks Revised To Negative On Rising Banking Sector Risks; Ratings Affirmed

Competitive dynamics in the German banking sector remain under pressure due to poor cost efficiency, rising risks from tech disruption, and expectations of a prolonged low-interest-rate environment. The risk of macroeconomic imbalances is increasing, since the external environment is starting to weigh on German corporates and house price growth shows no sign of slowing. As a result, we are revising our outlooks on members of the German cooperative banking sector and on DekaBank to negative from stable, while affirming our ratings on these entities. We are also affirming our ratings on a further nine banks, with our outlooks on five of banks staying negative and those on the other four remain stable. The ratings on Deutsche Bank and on core

...- Competitive dynamics in the German banking sector remain under pressure due to poor cost efficiency, rising risks from tech disruption, and expectations of a prolonged low-interest-rate environment. - The risk of macroeconomic imbalances is increasing, since the external environment is starting to weigh on German corporates and house price growth shows no sign of slowing. - As a result, we are revising our outlooks on members of the German cooperative banking sector and on DekaBank to negative from stable, while affirming our ratings on these entities. - We are also affirming our ratings on a further nine banks, with our outlooks on five of banks staying negative and those on the other four remain stable. - The ratings on Deutsche Bank and on core or highly strategic subsidiaries of foreign banks remain unaffected. FRANKFURT (S&P Global Ratings) Sept. 17, 2019--S&P Global Ratings said today that it has revised its outlooks on the following Germany-based banks to negative from stable:...

Ratings Action