UPDATE: Deutsche Bank (DB) A+ rating may be cut by S&P
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(Updated - March 26, 2013 5:32 PM EDT)
Deutsche Bank (NYSE: DB) ended the session in negative territory following a warning issued by one of the top U.S. credit rating agencies Tuesday afternoon.
Standard & Poor's (S&P) said it was placing Deutsche Bank's A-plus long-term credit rating on CreditWatch negative, signalling a potential cut soon. News comes following an announcement from Deutsche Bank last week that it would be setting aside funds to cover lawsuits tied to U.S. mortgages and other litigation. The bank said FY12 profit would be lower by about €400 million.
Risks include Deutsche Bank's ability to generate capital as well as ongoing economic uncertainty in the region, bolstered by recent activity in Cyprus.
New U.S. federal regulations might also make it more challenging for European banks to conduct business in the States, S&P noted.
Shares of Deutsche Bank ended about a quarter-percent lower.
Deutsche Bank (NYSE: DB) ended the session in negative territory following a warning issued by one of the top U.S. credit rating agencies Tuesday afternoon.
Standard & Poor's (S&P) said it was placing Deutsche Bank's A-plus long-term credit rating on CreditWatch negative, signalling a potential cut soon. News comes following an announcement from Deutsche Bank last week that it would be setting aside funds to cover lawsuits tied to U.S. mortgages and other litigation. The bank said FY12 profit would be lower by about €400 million.
Risks include Deutsche Bank's ability to generate capital as well as ongoing economic uncertainty in the region, bolstered by recent activity in Cyprus.
New U.S. federal regulations might also make it more challenging for European banks to conduct business in the States, S&P noted.
Shares of Deutsche Bank ended about a quarter-percent lower.
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