Commerzbank: Rating agency gives thumbs up
Commerzbank shares are gaining momentum again. Wednesday's price jump led to follow-up gains yesterday. This is not only due to UniCredit's emphasized interest in a merger. There's also good news from the rating agencies.
On June 24, the share reached its year-to-date high of €28.69 based on closing prices. However, the following day, the price fell to €27.06. This was caused by profit-taking and declining takeover speculation, which has now rekindled.
This week, it was revealed that UniCredit CEO Andrea Orcel wrote a letter to Chancellor Friedrich Merz vehemently advocating for the takeover. This apparently hasn't changed the federal government's negative stance toward a merger.
Meanwhile, Commerzbank shares are on the rise again and could soon attack their annual high. Yesterday, it was announced that the rating agency Moody's has upgraded the bank's credit rating. The deposit rating has risen from Aa3 to A1, and the long-term issuer rating from A2 to A1. The outlook remains stable.
According to Moody's, the upgrade in the long-term rating reflects improved profitability and significantly strengthened capitalization. Commerzbank has also made progress toward achieving its medium-term objectives, and asset quality remains solid and sustainable despite a two-year recession in Germany, the rating analysts said.
The rating upgrade by Moody's is a major endorsement of the restructuring course pursued in recent years. Furthermore, it will now be more favorable for Commerzbank to refinance on the market.
Shareholders have been sitting on substantial profits since the beginning of the year. However, newcomers, due to the no longer favorable valuation, have better entry opportunities with competitors from Southern Europe, such as Banco Santander. Investors who have invested are hedging their positions with a stop loss of €24.00 and are staying on board.
Reference to conflicts of interest
The board member and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly entered into positions in the following financial instruments or derivatives related to them mentioned in the publication, which may benefit from any price developments resulting from the publication: Commerzbank.
In this groundbreaking book, Jonathan McMillan offers a new perspective on our economic system. He shows that capitalism and a market economy are not the same thing, revealing a fundamental flaw in our financial architecture. This has tangible consequences – especially for Europe.
McMillan places the Eurozone's problems in a broader historical context and develops a radical yet well-thought-out reform proposal. It becomes clear that anyone who wants to preserve a free and democratic society in the 21st century cannot avoid a new economic order.
deraktionaer.de
