Fitch downgrades Deutsche Bank rating to BBB+

In a statement released by the ratings agency overnight, it said that continued pressure on earnings contributed to the downgrade to BBB+ from A-.

Deutsche has been dogged by problems in recent times, with its share price plummeting following a series of disappointing results and fines from regulators. The IMF has described the German entity as the greatest contributor to systemic risk among the world’s largest lenders.

“The downgrades reflect continued pressure on Deutsche Bank's earnings, combined with prolonged implementation of its strategy,” Fitch said.

“We no longer expect revenue to demonstrate any clear signs of franchise recovery this year and we expect necessary further restructuring costs to continue to erode net income.”

In March CEO John Cryan announced a third round of restructuring for the bank in as many years, with revenue declining and warnings of further decreases this year.

“Revenue is suffering from low capital market volatility combined with persistently low interest rates, particularly in Europe, where the bank is strongest,” the agency added.