Commerzbank AG

The stable outlook reflects our expectation that Commerzbank will continue to demonstrate sound financial and capital performance over the next two years. We anticipate that Commerzbank will deliver on its main strategic targets, maintain sound capital and liquidity, and further improve its resilience to unexpected stress. We could lower the ratings if Commerzbank's sustainable risk-adjusted profitability weakens due to unexpected material asset quality problems from economic and geopolitical risks. We could also consider lowering the ratings if Commerzbank's RAC ratio falls sustainably below 10% due to single event risks or a more aggressive capital return policy. An upgrade is unlikely over our outlook horizon but could occur if Commerzbank strengthens its creditworthiness closer to peers with 'a-' group stand-alone credit

...We believe Commerzbank has strengthened its business model and financial performance. We anticipate that Commerzbank will execute its strategy and demonstrate improved risk-adjusted profitability, based on its enhanced solid domestic market position and diversification. The bank has delivered on most of its 2024 targets one year ahead of plan, finalizing its multi-year transformation and realignment of its business model. The transformation success is rooted in Commerzbank management's consistent execution of business re-alignments in recent years, with significant cost and efficiency measures. Higher interest rates in the eurozone and Poland also strongly support the transformation....

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