We expect Commerzbank's sizable and sustainable amounts of additional loss-absorbing capacity (ALAC) to provide further protection to senior creditors in a resolution scenario. We now expect net positive issuance volumes in bail-in-able instruments supporting the bank's ALAC buffer to stay above 6% and think that improved profitability prospects allow Commerzbank to absorb higher funding costs from these instruments. We therefore raised our long-term issuer credit rating on Commerzbank to 'A-' from 'BBB+' and affirmed our 'A-2' short-term rating. We also raised our resolution counterparty ratings to 'A/A-1' from 'A-/A-2'. Our stable outlook reflects our expectation that Commerzbank will reach its financial targets, keep its solid financial profile, and sustain an ALAC buffer above 6%. On March 23, 2023, S&P Global
