On July 24, 2003, Standard&Poor's Ratings Services affirmed its 'A-/A-2' counterparty credit and certificate of deposit ratings on Commerzbank AG and related entities. The outlook is negative. The affirmation follows Standard&Poor's regular review of Commerzbank and reflects progress in the bank's restructuring process, particularly its sound credit risk management, which compares favorably with many domestic peers, and its declining cost base. At this stage, however, Commerzbank's weak profitability and modest capital strength remain well below those of international peers rated in the 'A' category. Standard&Poor's continues to be concerned that Commerzbank's initiatives might not yet be sufficient to substantially improve earnings over time considering the weak economic environment and the persistent structural problems of
