...Outlook: Stable The stable outlook on Commerce Bancshares Inc. reflects S&P Global Ratings' expectation that we are unlikely to change the rating over the next two years since we forecast financial performance to remain relatively steady despite the economic slowdown resulting from the COVID-19 pandemic and continued net interest margin (NIM) pressures. We expect the firm's risk-adjusted capital (RAC) ratio to decrease due to the redemption of preferred shares and lower earnings but remain in the 10%-15% range we consider strong. We also expect certain asset quality metrics could weaken in the coming months due to the economic downturn and the typical lag in resolving problem assets. But we expect credit losses to stay manageable because of Commerce's diversified loan portfolio and history of conservative lending policies; we view the increase in loan-loss allowances this year positively. We could lower the ratings if Commerce's credit quality metrics worsen substantially more than we anticipate,...
