...+ On July 20, 2017, we published an update to our risk-adjusted capital (RAC) framework methodology. + Under the new methodology, we estimate that Commerzbank's pro forma RAC ratio at end-2016 declined by roughly 140 basis points to about 9%, mainly from the introduction of credit value adjustment charges and our now more conservative treatment of deferred tax assets. + We expect that Commerzbank will recover its capital ratios over the coming two years on the back of restored profitability and related earnings retention, further risk reductions in nonstrategic portfolios, and finalized restructuring. + We are affirming our 'A-/A-2' ratings on the bank, and removing the under criteria observation designation previously assigned to the long-term ratings. + The negative outlook on Commerzbank reflects that we might lower our ratings if economic risks in Germany were to worsen within the next two years, or the bank fails to replenish its capitalization....
