The ratings on Commerzbank AG and its subsidiaries reflect Commerzbank's release of preliminary full year figures for 2000 with a net loss of €98 million ($88 million) in the fourth quarter. The ratings also reflect the bank's failure to improve its operating profitability, excluding one-off profits, its rising and inflexible expense levels, and its greater ambitions in investment banking. While Commerzbank's results were roughly in line with expectations until Sept. 30, 2000, the release of preliminary figures for the year and, in particular, the weak results for the fourth quarter, with a further slowdown in revenues, a strong increase in expenses, and higher provisioning needs (including a loss of €100 million in its stake in Korea Exchange Bank, which is
