Ongoing improvements in earnings through successful restructuring of business lines Sound management Solid franchise in Germany Acquisition of Eurohypo is expected to add diversity to earnings Low market shares in low growth and highly competitive domestic market environment Largely wholesale-oriented business mix High exposure to cyclical corporate and real estate lending Limited franchise outside Germany The ratings on Germany-based Commerzbank AG reflect its improved earnings trend, following a successfully managed turnaround, and its solid franchise in Germany in corporate and private customer business. Although structural improvements increasingly mitigate the risk of setbacks in less favorable times, the primary negative rating factors are remaining concerns about the bank's potential vulnerability to cyclical swings. This reflects low domestic market shares and low
