Deutsche Bank (DB) Stock Falls, S&P Cuts Credit Outlook
NEW YORK (TheStreet) -- Shares of Deutsche Bank (DB) - Get Report are retreating 3.78% to $13.99 this afternoon after S&P Global Ratings cut its credit outlook to "negative" from "stable," noting that market conditions and Britain's recent decision to leave the EU will likely complicate the German bank's planned restructuring.
The ratings agency nonetheless maintained its BBB+ credit rating for the company's long-term unsecured debt.
But S&P warned that a credit downgrade could follow "if market conditions challenge Deutsche Bank's ability to preserve its capital and maintain its franchise while implementing its restructuring plans," the Wall Street Journal reports.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Deutsche Bank's weaknesses include its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: DB
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.