Commerzbank Stock: Ratings Boost Amid UniCredit Pursuit

Moody's has significantly upgraded Commerzbank's ratings, citing strengthened capital position and improved profitability despite Germany's two-year recession. The long-term deposit rating jumped from A1 to Aa3, while the issuer rating was raised from A2 to A1, with a stable outlook maintained. The rating agency specifically addressed potential control change implications as UniCredit continues its takeover efforts. Moody's caution about protecting solvability profiles suggests careful monitoring of capital buffers will be essential should an acquisition materialize.

UniCredit Intensifies Takeover Campaign

UniCredit CEO has renewed pursuit of Commerzbank with an aggressive strategy, sending three letters to Germany's new government seeking political backing for acquisition plans. This diplomatic offensive marks a strategic shift after previously suggesting Commerzbank's stock price had climbed too high for an attractive purchase. The renewed takeover speculation triggered a significant 5% jump in Commerzbank shares, outperforming the broader European banking sector which itself posted gains of 1.5%. The Italian bank's persistent courtship highlights its determination to secure German political support, viewed as critical to any successful transaction.

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Source StockWorld