Deutsche Bank CoCo Ratings Cut by S&P on Earnings Concerns
- Lender could report loss that threatens ability to pay: S&P
- Ratings company said it expects bank can make Tier 1 payments
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Deutsche Bank AG’s riskiest debt was downgraded by Standard & Poor’s due to concerns that potential losses at Germany’s biggest lender could restrict its ability to pay on the obligations.
S&P reduced the grade on the bank’s Tier 1 securities to B+ from BB-, according to a statement Thursday. The new rating is four levels below investment grade. Perpetual Tier 2 instruments were cut to BB- from BB.