By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: Moody’s suggests Commerzbank deal may raise UniCredit’s junior debt ratings – News
Share
Notification Show More
Recent Saved
Workers in Bucharest face challenges as temperatures rise
World
Dress code guidelines for the Qatari government sector during office hours
Qatar
Court rules in favor of worker after company dismisses him for salary deductions over 6 years, awarding BD 27,000.
Bahrain
UAE to See Almost 30,000 New Millionaires in 5 Years
UAE
Proposed New Labor Law in Bahrain Targets Increasing Job Opportunities
Bahrain
Latest News
Ferrero’s Social Responsibility Project Kinder Joy of moving Beats Traditional PE Curriculum, Tapping into the Cognitive Functions, Motor Coordination and Life Skills of Students
Lifestyle
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech
Beat the Heat This Summer with a Chill Out on Dubai Marina
World
Historic Italian City of Assisi to Host International Exhibition “Jordan: Dawn of Christianity”
World
Jordan to Host Iraq in the Final Round of the Asian World Cup Qualifiers After Securing Historic Spot
Sports
The Myriad Redefines Student Living for a Mobile, Urban Generation
UAE
L’Oréal Paris Welcomes Yasmine Sabri as New Brand Ambassador for the Middle East
Lifestyle
Roland Garros 2025: A New Era of Viewing, A Tribute to Legends, and Moments to Remember
Sports World
Bitget Celebrates Bitcoin Pizza Day by Distributing Over 5000 Pizzas in Over 20 Cities Worldwide
Crypto
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Moody’s suggests Commerzbank deal may raise UniCredit’s junior debt ratings – News
Business

Moody’s suggests Commerzbank deal may raise UniCredit’s junior debt ratings – News

News Room
Last updated: 2024/10/02 at 11:45 PM
News Room
Share
3 Min Read
SHARE

The potential acquisition of Commerzbank by UniCredit has caught the attention of credit rating agency Moody’s, which may consider raising UniCredit’s rating for its riskier debt. While UniCredit currently holds a ‘Baa1’ rating, which is already two notches above Italy’s rating, an acquisition could lead to an upgrade in its standalone assessment. This upgrade could result in improvements in the ratings for debt riskier than senior unsecured borrowings, ultimately reducing its funding costs.

The prospect of UniCredit reducing its exposure to Italian debt and Commerzbank’s higher credit rating are key factors driving the Italian bank to pursue a deal with Commerzbank. UniCredit’s senior unsecured debt accounts for 37%, subordinated debt represents 10%, and Additional Tier 1 bonds make up 4% of its total debt. Moody’s has identified the potential benefits of a full takeover of Commerzbank for UniCredit, including international diversification, reduced exposure to Italian sovereign risk, and improved capitalization, asset risk, funding, and liquidity.

UniCredit’s strong capitalization and excess capital, accumulated after a long restructuring phase, position the bank well for a potential acquisition of Commerzbank. Moody’s believes that a deal could lead to a stronger footprint in Germany, diversified funding channels, and lower direct exposures to Italy’s debt relative to capital. While the acquisition may temporarily reduce profitability due to restructuring costs, it could ultimately result in higher returns through cost synergies in Germany and a stronger combined franchise.

Italy’s weak credit standing has historically been a challenge for Italian banks looking to expand internationally. However, an acquisition of Commerzbank could help UniCredit overcome these challenges and further strengthen its position in the European banking sector. Moody’s will closely monitor the progress of the potential deal and assess its impact on UniCredit’s credit rating and financial stability. Ultimately, the success of the acquisition will depend on various factors such as international diversification, capitalization, asset risk, funding, and liquidity.

The acquisition of Commerzbank by UniCredit would mark Europe’s first major cross-border banking deal since the global financial crisis. While the move has sparked concerns among Germany’s establishment and Commerzbank’s emphasis on independence, UniCredit remains committed to exploring a full takeover. Moody’s analysis suggests that the acquisition could lead to long-term benefits for UniCredit, including enhanced profitability, cost synergies, and a stronger market position in Germany. As the two banks navigate the complexities of a potential deal, investors and stakeholders will be closely watching for any developments that could impact the financial landscape of the European banking sector.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room October 2, 2024
Share this Article
Facebook Twitter Copy Link Print
Previous Article UAE: Traveler apprehended with 8.7kg of drugs at Sharjah airport
Next Article The EU Film Festival in Muscat comes to an end with a stunning closing ceremony.
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

Ferrero’s Social Responsibility Project Kinder Joy of moving Beats Traditional PE Curriculum, Tapping into the Cognitive Functions, Motor Coordination and Life Skills of Students
Lifestyle July 14, 2025
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports July 6, 2025
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech July 1, 2025
Beat the Heat This Summer with a Chill Out on Dubai Marina
World July 1, 2025

You Might also Like

Tech

Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World

July 1, 2025
Crypto

Bitget Celebrates Bitcoin Pizza Day by Distributing Over 5000 Pizzas in Over 20 Cities Worldwide

May 22, 2025
BusinessCrypto

Bitget Protection Fund Maintains Strength with $561 Million Average Value in April 2025

May 20, 2025
BusinessGulfUAE

Muhammad Umair Saeed: The Billionaire Tech Architect Powering AI, Drones, Blockchain & Cybersecurity from Dubai to the World

May 10, 2025
BusinessCrypto

RWA project FEXSE tokenises $600,000 Jacob & Co. luxury watch on the blockchain

April 14, 2025
Business

NTT DATA Business Solutions Expands Presence in UAE with Stronger Regional Leadership

March 28, 2025

Sustainable Moving Services: How Dubai’s Moving Companies Are Going Green

February 20, 2025
Tech

CNTXT and Oracle Strengthen AI Collaboration to Drive Innovation

February 14, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?