OREANDA-NEWS. Fitch Ratings says the recent upgrade of Commerzbank AG's (CBK, BBB+/Stable/F2) Issuer Default Rating (IDR), (see 'Fitch Upgrades Commerzbank to 'BBB+'; Outlook Stable', dated 7 March 2016, on www.fitchratings.com) has no rating impact on CBK's mortgage and public sector Pfandbriefe, both rated 'AAA'/Stable and on CBK's SME structured covered bonds programme rated 'AA'/Stable.

The ratings on a probability of default basis remain unchanged at 'AA' (Pfandbriefe programmes) and 'A+' (SME structured covered bonds programme). Consequently the IDR upgrade has no impact on the respective programmes' breakeven overcollateralisation levels for their ratings.

However, the upgrade of CBK's IDR reduces the vulnerability of CBK`s covered bond programmes` ratings to potential IDR downgrades. The SME programme can now sustain a five-notch downgrade, the public sector Pfandbriefe a two-notch downgrade and the mortgage Pfandbriefe a one-notch downgrade.