Germany-based Commerzbank AG has announced a planned €11 billion rights issue and subsequent €14.3 billion (partial) repayment of the hybrid capital from the German government. In our view, such a capital transaction is commensurate with Commerzbank's current ratings. We are affirming our 'A' long-term and 'A-1' short-term counterparty credit ratings on Commerzbank. The negative outlook reflects our view that Commerzbank remains exposed to short- to medium-term restructuring risks. FRANKFURT (Standard&Poor's) April 7, 2011--Standard&Poor's Ratings Services said today that it had affirmed its 'A' long-term and 'A-1' short-term counterparty credit ratings on Germany-based Commerzbank AG. The outlook remains negative. The rating action follows the announcement of Commerzbank's plan to increase its common equity by an €11 billion
