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Fitch downgrades Siemens on profitability worries

FRANKFURT, Germany (AP) -- U.S. ratings agency Fitch Ratings has lowered its credit rating for Siemens AG, saying the company's profitability has eroded.

The agency reduced Siemen's long-term issuer default rating to A from A plus.

The downgrade Friday caps a turbulent week for Siemens following the resignation on Wednesday of CEO Peter Loescher and his replacement by CFO Joe Kaeser.

Loescher quit after the company announced it would not reach its 2014 profit margin targets, citing weaker demand for its products and services.

The company's most recent earnings statement said margins fell to 6.5 percent in the April-June quarter from 9.2 percent in the same quarter a year ago.

The Munich-based company has 370,000 employees and makes a wide range of industrial machinery, including trains, power generation and transmission equipment and medical scanners.