OREANDA-NEWS. S&P Global Ratings today said that it has revised its outlook on the long-term counterparty credit rating on Deutsche Securities Inc. to negative from stable. At the same time, we have affirmed the 'BBB+' long-term and 'A-2' short-term counterparty credit ratings on the Japan-based operating company of the Deutsche Bank group.

Deutsche Securities is indirectly and fully owned by Deutsche Bank AG (BBB+/Negative/A-2). Our rating actions on Deutsche Securities today follow the same rating actions that we took on its parent company, Deutsche Bank, on July 19, 2016. They are also part of the rating actions that we took on the core subsidiaries of the Deutsche Bank group (see "Deutsche Bank Outlook Revised To Negative As Operating Conditions May Challenge Strategy Execution; Ratings Affirmed," published July 19, 2016).

Under our group rating methodology, we view Deutsche Securities as highly integral to the Deutsche Bank group. Therefore, we assess Deutsche Securities as a core subsidiary of the group and our ratings on the company are equal to those on Deutsche Bank (the long-term rating is equal to the group credit profile (GCP) for the Deutsche Bank group).

The outlook on the long-term counterparty credit rating on Deutsche Securities is negative, reflecting our rating outlook on Deutsche Bank. We might downgrade Deutsche Securities if we revise downward the GCP or if we determine that its link with its parent has weakened or that the likelihood of extraordinary group support has declined because, for example, Japan-based securities operations have become less important to the group. Conversely, if we revise upward the outlook on Deutsche Bank to stable, we are likely to take the same action on Deutsche Securities.