Excellent, diversified investment-banking franchise Focused, successful strategy Earnings resilience in light of difficult market conditions Strong risk management Cyclical sensitivity of profitability to capital-markets conditions Large book of leveraged-finance underwriting commitments Still average earnings levels in parts of its asset- and wealth-management activities The ratings on Deutsche Bank AG are based on its excellent, diversified investment-banking franchise; a favorable view of management, which has successfully executed its focused growth strategy; and satisfactory performance due to proactive risk management, despite difficult market conditions. The ratings are constrained by the cyclical sensitivity of profitability to capital markets conditions; its significant exposure to deteriorating conditions in the leveraged finance business; and still average earnings levels in parts of its asset- and wealth-management activities.
