Bulletin: Commerzbank AG And Societe Generale Ratings Not Immediately Affected By Sale Agreement

FRANKFURT (S&P Global Ratings) July 3, 2018--S&P Global Ratings said today that its ratings on Germany-based Commerzbank AG (A-/Negative/A-2) and France-based Société Générale (A/Stable/A-1) are not immediately affected by today's announcement that Société Générale will acquire from Commerzbank its equity markets and commodities (EMC) business. In our view, Commerzbank's divestment of its EMC business and the related financial effects are in line with Commerzbank 4.0, the medium-term plan the bank announced in 2016. The transaction would include the transfer of trading books, client franchise, staff, and IT infrastructure. It remains subject to preclearance by the relevant authorities. Société Générale anticipates that it will receive clearance in the second half of this year, with the gradual integration of activities and associated

...FRANKFURT (S&P Global Ratings) July 3, 2018--S&P Global Ratings said today that its ratings on Germany-based Commerzbank AG (A-/Negative/A-2) and France-based SociTtT GTnTrale (A/Stable/A-1) are not immediately affected by today's announcement that SociTtT GTnTrale will acquire from Commerzbank its equity markets and commodities (EMC) business. In our view, Commerzbank's divestment of its EMC business and the related financial effects are in line with Commerzbank 4.0, the medium-term plan the bank announced in 2016. The transaction would include the transfer of trading books, client franchise, staff, and IT infrastructure. It remains subject to preclearance by the relevant authorities. SociTtT GTnTrale anticipates that it will receive clearance in the second half of this year, with the gradual integration of activities and associated teams beginning toward the end of the year. We believe the transaction is also in line with SociTtT GTnTrale's 2016-2020 medium-term strategy to further extend...

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