BERLIN (Reuters) – Standard & Poor’s (S&P) upgraded several of Deutsche Bank The German lender announced Tuesday that it had raised its ratings for (DE:), including long-term issuer credit ratings and senior preferred debt ratings to A- from BBB+, citing restructuring gains.

Recent ratings agencies Moody’s (NYSE 🙂 and Fitch have upgraded Deutsche in the last month.

To return to profitability, the bank started a restructuring process in 2019. It closed some business and laid off thousands of workers. The bank reported its first profit for a full year since 2014 in 2020.

The reorganisation of Deutsche Bank is more decisive in addressing the bank’s main weaknesses with excessive costs and underperforming business units than its previous restructuring programmes, the bank quoted S&P as saying.

“We see greater rigor in senior management’s execution of the plan, and the bank is achieving its milestones as it works toward its 2022 financial targets,” S&P was quoted as saying.

Deutsche Bank’s ratings have been upgraded to the “A” rating with leading rating agencies.

A company’s credit rating is critical, and Deutsche Bank, which like other financial institutions, has a large debt-issuance capacity, makes it even more important.

Deutsche may be able to get lower financing costs due to higher ratings. This will allow Deutsche to return more sustainably profitable.

“It’s very encouraging to see our progress on Deutsche Bank’s transformation recognised, once again, by a leading rating agency,” said Chief Executive Officer Christian Sewing.