Fitch Ratings yesterday offered a blunt assessment of Royal Bank of Canada as it announced it was placing credit ratings of Canada’s largest bank on a negative watch.

Fitch has placed the long-term and individual ratings of Royal Bank of Canada (‘AA’ and ‘A/B’, respectively) and the long-term, short-term, and individual ratings of RBC Centura Banks, Inc. (‘AA-‘, ‘F1+’, and ‘B’, respectively) and its subsidiaries on rating watch negative.

In a release, Fitch said the rating watch “reflects the continued difficulties and missteps in the company’s U.S. operation, as well as the recent announcement of a senior management and business unit realignment in Toronto that has led to the retirement of a number of the company’s seasoned and well respected management team.”

Fitch said the watch will be resolved following Fitch’s review of RBC’s strategy to improve their financial performance, especially in the U.S. market, under the auspices of the new management structure.