Following a series of recent downgrades and the news of an SEC investigation into its mortgage-bond trading business, Deutsche Bank AG (USA) DB faces another embarrassing headline this morning as Moody’s Corporation MCO cut its debt rating to Baa1 (only two levels above the “junk” rating).
Moody’s, which provides credit ratings and economic data worldwide, issued a statement Tuesday assigning a negative outlook to the bank’s debt and deposit ratings. The agency went on to question Deutsche Bank’s ability to execute on its near-term strategic plan, warning that significant execution risk could linger for the next two years.
None of this seems to bother investors in the slightest. Though the share price took a tumble following an analyst downgrade at the end of April, it has since recovered nicely.
At time of writing, shares of Deutsche Bank were up 2.10 percent at $17.28.
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