Deutsche Bank rating affirmed at S&P; outlook negative
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Deutsche Bank’s credit rating was affirmed at Standard & Poor’s on expectations that the embattled German lender will likely be able to substantially negotiate down the penalty in a US probe of the alleged mis-selling of mortgage-backed securities.
New York-based S&P said that it reckons Deutsche Bank will likely settle civil claims lodged by the US Department of Justice for a “materially smaller” amount than the regulator’s opening offer of $14bn, based on “settlements already reached by peers”.
The resolution in the Justice Department investigation has been closely watched by investors who were already fretting over the potential for the company to need to raise additional capital.
S&P rates Deutsche Bank at “BBB+” with a “negative” outlook, meaning there is still a heightened probability that it may cut the rating in the future.
Comments