FRANKFURT: Credit rating agency Fitch has revised its outlook for Deutsche Bank to positive from negative citing progress in its multi-billion euro restructuring process.

Fitch rates the German lender BBB, the lowest score from any of the top ratings agencies and just two notches above non-investment grade, also known as junk.

The coronavirus pandemic last year prompted credit agencies to take a more pessimistic view of the banking sector but Deutsche's ratings were already under pressure during years of losses.

"The ratings could be upgraded within the next 18 months," Fitch said on Monday, adding that the bank still faced a "challenging path" on its ambitions for cost cuts and revenues.

Moody's lifted its negative outlook on the bank in November, but Standard & Poor's still maintains a negative outlook.

Deutsche Bank's finance chief, James von Moltke, wrote in a memo seen by Reuters that he was pleased by Fitch's move.