Research Update: Deutsche Bank AG 'BBB+/A-2' Ratings Affirmed On Early Progress In Restructuring; Outlook Stable

Since July, Deutsche Bank AG has embarked on a broad and deep multiyear restructuring plan to bring its profitability into line with its cost of capital. We see some positive early progress, most evident in the refocusing of the investment bank and the runoff of exposures in the capital release unit (CRU). However, with substantial operational execution due in 2020 across all divisions, we see this as a critical period that will determine whether, amid an adverse environment, the plan will be successful. We are affirming our 'BBB+/A-2' issuer credit ratings on the bank and its core operating subsidiaries. The unchanged stable outlook acknowledges execution risks, but reflects our expectation that management delivers in line with its financial targets, and

...- Since July, Deutsche Bank AG has embarked on a broad and deep multiyear restructuring plan to bring its profitability into line with its cost of capital. - We see some positive early progress, most evident in the refocusing of the investment bank and the runoff of exposures in the capital release unit (CRU). - However, with substantial operational execution due in 2020 across all divisions, we see this as a critical period that will determine whether, amid an adverse environment, the plan will be successful. - We are affirming our '###+/A-2' issuer credit ratings on the bank and its core operating subsidiaries. - The unchanged stable outlook acknowledges execution risks, but reflects our expectation that management delivers in line with its financial targets, and that this supports the bank's creditworthiness relative to its peers....

Research Update