Sound domestic market position in corporate banking. Sound capitalization and material levels of additional loss-absorbing capital (ALAC) to protect senior creditors in the event of a resolution. Prudent funding and liquidity management and metrics. Against the backdrop of difficult markets, in the medium term Commerzbank needs to improve subpar shareholder returns to substantiate the business' sustainability. Below-average market share and earnings from domestic retail activities. Loan book quality metrics and composition still untested through a full business cycle, and generally below those of some international peers. S&P Global Ratings' negative outlook on Commerzbank AG acknowledges downside risks that management faces in the coming 12-24 months, including weakened operating conditions amid the COVID-19 pandemic and challenges in executing the restructuring plan.
