Bloomberg News

Commerzbank May Need German State Capital Injection, Fitch Says

November 07, 2011

Nov. 7 (Bloomberg) -- Commerzbank AG, Germany’s second- biggest lender, may need to ask the government for new capital as shareholders remain reluctant to pump in more cash, Fitch Ratings said.

“Fitch expects any need for additional capital would be met mostly by the state,” the ratings company said in a statement today. Commerzbank’s 11 billion-euro ($15.1 billion) rights offering earlier this year “could dampen shareholder appetite for further equity increases,” Fitch said.

Commerzbank must raise 2.9 billion euros of capital by the middle of 2012, according to European Banking Authority estimates cited by Fitch. Armin Guhl, a Commerzbank spokesman in Frankfurt, declined to comment.

--Editors: Keith Campbell, Jon Menon.

To contact the reporter on this story: Niklas Magnusson in Hamburg at nmagnusson1@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net


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