Sound credit-risk management; Solid franchise in Germany; and Successful restructuring of core segments. Low growth and highly competitive domestic market environment; Modest profitability levels; and Limited franchise outside Germany. The ratings on Germany-based Commerzbank AG reflect its sound credit-risk management and the bank's domestic franchise among private and corporate customers, which provides it with a sound and diversified funding base and gradually improving earnings following a prolonged restructuring phase that is nearing completion. The primary negative rating factors remain the bank's still modest core profitability and market position in a highly competitive and structurally difficult domestic market environment as well as its limited franchise outside Germany, all of which confine the prospects for substantial revenue growth as long as economic
