Turnaround through successful restructuring of business lines, Sound risk management, Solid franchise in Germany, and Increased diversity of earnings from acquisition of Eurohypo AG. Low market shares in low growth and highly competitive domestic market environment, Modest profitability, High exposure to domestic real estate markets and international commercial real estate lending, and Limited franchise outside Germany. The ratings on Germany-based Commerzbank AG reflect its turnaround following a prolonged restructuring, which is nearing completion, sound risk management, and the bank's domestic franchise among private and corporate customers. The primary negative rating factors remain the bank's improved but still modest core profitability and market position in a highly competitive and structurally difficult domestic market environment, and its limited franchise outside Germany, which
