A source familiar with the thinking of the European Central Bank, which regulates Deutsche Bank, and its top shareholder HNA Group of China, said they backed the management's strategy of retrenchment.
"Notably, while much of the heavy-lifting should be completed in 2018, Deutsche Bank's restructuring will likely only start bearing fruit in 2019, and only fully by 2021", it said.
Deutsche's newly appointed chief executive Christian Sewing, who unexpectedly replaced John Cryan in early April, last week sought to reassure investors that the bank is ready to do what it takes to return to profitability.
Up until today, S&P rated Deutsche Bank's long-term credit at A-, on negative credit watch.
The United States Federal Reserve previous year designated Deutsche Bank AG's (DBKGn.DE) U.S. operations to be in "troubled condition", The Wall Street Journal reported on Thursday, citing people familiar with the matter.
Deutsche Bank AG (NYSE:DB) touched its 1-Year High price of $20.23 on 12/18/17 and its 1-Year Low price of $11.18 on 05/29/18.
"Sewing's announcement is tough for some but it's the right thing to do in the current situation", said Aleksander Montalbetti, managing partner at executive search firm Signium in Frankfurt.
New US tariffs would make trade deals void, China says
China has threatened to hit back with tit-for-tat tariffs on tens of billions of dollars in United States goods. Ross was to have a dinner meeting with Vice-Premier Liu He at the guest house.
Shares of Deutsche Bank AG (NYSE:DB) were down 2.5% on Wednesday.
The WSJ report had sent Deutsche Bank's shares down 7 percent to their lowest closing level, valuing it at $22 billion.
And further reports on Friday identify Deutsche as one of a number of banks facing criminal charges in Australia over a 2015 share placement it helped arrange for the Australia and New Zealand Banking Group (ANZ).
European banking regulators said that Deutsche had made "good progress" in its efforts to address regulatory concerns. We're not yet where we want to be, but we're steadily getting there. Sewing announced last week that the bank would cut its workforce from 97,000 to under 90,000 and refocus its global investment banking business on its European core, while cutting back on stocks trading operations in NY and London.
S&P said in its assessment that it believed management "is taking decisive actions" to control costs. USA regulators in March warned Europe's biggest investment bank it must act more urgently to fix lapses described in a series of settlements with the Federal Reserve over the past few years, Bloomberg reported in May.
"We appreciate S&P's statement that 'management is taking tough actions to cut the cost base and refocus the business in order to address the bank's now weak profitability", the German lender said.