The agency Moody's downgraded the creditworthiness of Deutsche Bank bonds
The Moody's rating agency Investors Service downgraded the creditworthiness of Deutsche Bank's unsecured bonds sto Baa2 from Baa1, saying the German bank faces increasing problems in trying to achieve the reversal of the course, transmits agency Bloomberg. The new solvency of Deutsche two levels above the limit of investment grade (junk), while the solvency of the term deposits downgraded to A3 from A2.
"The performance of Deutsche Bank over the past several quarters was weak and significant frontal winds with respect to its operation, including the continuing low interest rates and macroeconomic uncertainty, will create problems for the company," he said in a statement by Moody's. The results so far and the challenges ahead, including a further drop in activity on consumers and the market, will likely cause the Deutsche Bank to balance the cost of restructuring the need to gather funds for the increased regulatory requirements, added the firm .
"The project trying to implement is good for bondholders in the long term, but face some pretty tough frontal winds, if you look at the current operating environment," said Peter Nermpi, a vice president of Moody's, in a telephone interview with Bloomberg.
The Moody's rating agency Investors Service downgraded the creditworthiness of Deutsche Bank's unsecured bonds sto Baa2 from Baa1, saying the German bank faces increasing problems in trying to achieve the reversal of the course, transmits agency Bloomberg. The new solvency of Deutsche two levels above the limit of investment grade (junk), while the solvency of the term deposits downgraded to A3 from A2.
"The performance of Deutsche Bank over the past several quarters was weak and significant frontal winds with respect to its operation, including the continuing low interest rates and macroeconomic uncertainty, will create problems for the company," he said in a statement by Moody's. The results so far and the challenges ahead, including a further drop in activity on consumers and the market, will likely cause the Deutsche Bank to balance the cost of restructuring the need to gather funds for the increased regulatory requirements, added the firm .
"The project trying to implement is good for bondholders in the long term, but face some pretty tough frontal winds, if you look at the current operating environment," said Peter Nermpi, a vice president of Moody's, in a telephone interview with Bloomberg.
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