S&P Affms Commerzbank AG Rtgs; Changes Outlk to Stable.LONDON--(BUSINESS WIRE)--Standard & Poor's CreditWire 12/3/97-- Standard & Poor's today has affirmed af·firmv. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its double-'A'-minus/'A-1+' ratings of Commerzbank This article is about the bank headquartered in Frankfurt, Germany. For other uses, see Commerce Bank. Commerzbank AG (ISIN: DE0008032004, DAX: B>CBK) is the second-largest bank in Germany (after Deutsche Bank) and headquartered in Frankfurt am Main. and related entities (see list below). The outlook for the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ratings were changed to 'stable' from 'negative'. The outlook change reflects Commerzbank's successes in improving its asset quality, loan loss coverage, capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. and core profitability over recent years. With total consolidated assets of DM 513.3 billion (US294.5 billion at DM 1.75 to US1) as of September September: see month. 30, 1997, Commerzbank ranks among the four largest private banking groups in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . Commerzbank's asset quality has improved over recent years, and benefits from the relatively low-risk lending of its mortgage subsidiaries, accounting for about 30% of total loans. As the quality of its domestic loan portfolio had suffered in recent years, Commerzbank has increased the loan loss coverage of its domestic corporate book. Since 1993, overall level and coverage of problem loans, charge-offs, and provisioning requirements, have decreased to acceptable levels, and no longer represent a major drain on profitability, Standard & Poor's said. Given Commerzbank's commitment to maintain current capital ratios, and not to grow aggressively through large-scale large-scale adj. 1. Large in scope or extent. 2. Drawn or made large to show detail. large-scale Adjective 1. wide-ranging or extensive 2. acquisitions, and including parts of the group's internal reserves, Standard & Poor's regards Commerzbank's capitalisation n. 1. same as capitalization. Noun 1. capitalisation - writing in capital letters capitalization writing - letters or symbols that are written or imprinted on a surface to represent the sounds or words of a language; "he turned the paper as satisfactory, although they still remain modest relative to those of many international peers. The rights issue in October 1997, raising DM 1.56bn, and earnings retention of at least DM 1bn for 1997 should bring the group's Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. ratio (according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. KWG KWG Kreditwesengesetz (German: banking act) KWG Kids With Guns (band) KWG Kaiser Wilhelm Gymnasium KWG Kernkraftwerk Graben (German Banking Act)) close to 6%, which equates approximately a 5.8% BIS Tier 1 ratio. Commerzbank has also been able to improve its core profitability. Nevertheless, Commerzbank remains challenged to further improve the profitability of its domestic branch network. In addition, Commerzbank has to prove that it is able to generate strong and sustainable revenue flows which are less dependent on favourable capital markets. OUTLOOK: Stable The stable outlook reflects Standard & Poor's expectations that Commerzbank will maintain current profitability and capitalisation levels. Standard & Poor's also expects that Commerzbank's ambitions to significantly expand its equity business, will not result in excessive cost growth and increasing earnings volatility, Standard & Poor's said. -- CreditWire. -0- RATINGS AFFIRMED / OUTLOOK CHANGED TO FROM Commerzbank AG Counterparty Credit Rtgs AA-/Stable/A-1+ AA-/Negative/A-1+ Senior Unsecured debt AA-/Stable AA-/Negative CD AA+/Stable/A-1+ AA-/Negative/A-1+ CP A-1+ A-1+ Commerzbank U.S. Finance Inc. CP A-1+ A-1+ Commerzbank International S.A. Counterparty Credit Rtgs AA-/Stable/A-1+ AA-/Negative/A-1+ Senior Unsecured debt AA-/Stable AA-/Negative CD NR/ /A-1+ NR//A-1+ CP A-1+ A-1+ Commerzbank Europe (Ireland) Counterparty Credit Rtgs NR/ / A-1+ NR/ / A-1+ Commerzbank Europe (Ireland)plc CP A-1+ A-1+ Caisse Centrale de Reescompte Counterparty Credit Rtgs AA-/Stable/A-1+ AA-/Negative/A-1+ Senior Unsecured debt AA-/Stable AA-/Negative CD NR/ /A-1+ NR//A-1+ Hypothekenbank in Essen AG Counterparty Credit Rtgs AA-/Stable/A-1+ AA-/Negative/A-1+ Oeffentliche Pfandbriefe AAA AAA -0- CONTACT: Standard & Poor's Michael Zlotnik, (49) 69-138709-18 (Frankfurt) Barry Hancock, (44) 171-826-3515 (London) For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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