'Sick and Tired' of Bad News: Deutsche Bank CEO Reassures Staff Amid Rating Cut

© REUTERS / Toby Melville/FilesWorkers walk past the London headquarters of Deutsche Bank in the City of London, Britain in this May 19, 2015 file photo
Workers walk past the London headquarters of Deutsche Bank in the City of London, Britain in this May 19, 2015 file photo - Sputnik International
Subscribe
US
India
Global
Rating agency S&P Global has downgraded Deutsche Bank's credit rating from A- to BBB+, which is a blow to the financial institution, as less than a day ago bad news from Washington sent stock indices to a record low.

Christian Sewing, Deutsche Bank's new CEO, tried to assure employees of the bank's financial stability despite the fact that the financial institution is currently facing tough times.

"My dear colleagues, the last few years were tough. Many of you are sick and tired of bad news. That’s exactly how I feel. But there’s no reason for us to be discouraged. Yes, our share price is at a historic low. But we’ll prove that we have earned a better valuation on the financial markets. We’ve achieved a lot we can be proud of. We have reduced risks by billions of euros, we have strengthened capital and we have reorganised our bank. We can tick those boxes. Now we need to look forward," Sewing wrote in his memo to staff.

The CEO's address comes several hours after S&P Global Ratings lowered Deutsche Bank's credit rating to BBB+ from A-, giving "significant execution risks in the delivery of the updated strategy amid a continued unhelpful market backdrop" as a reason for its decision. "We think that, relative to peers, Deutsche Bank will remain a negative outlier for some time," S&P Global added.

READ MORE: Deutsche Bank Publishes 80% Loss in Net Income Amid Strategy Shift

The day before, media outlets reported that over a year ago, the Federal Reserve, the US central bank, had deemed some of Deutsche Bank's US subsidiaries as "troubled," which caused a sharp fall in the bank's share price.

Deutsche Bank headquarters - Sputnik International
Deutsche Bank Warns Higher Inflation Could Bring On Recession
Meanwhile, Deutsche Bank, alongside Australia and New Zealand Banking Group Ltd and Citigroup, is also facing criminal cartel charges in Australia over a $2.3 billion share issue.

Sewing became Deutsche Bank's CEO in April after its former head John Cryan resigned after three years of losses. Last week, Sewing announced new restructuring plans stipulating staff cuts from 97,000 to under 90,000 employees and concentrating stock trading operations in Europe and Germany in particular, cutting back on its business in the US.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала