On May 7, 2008, Standard&Poor's Ratings Services affirmed its 'A' long-term and 'A-1' short-term counterparty credit ratings on Germany-based Commerzbank AG and related core subsidiaries. The outlook is stable. The affirmation reflects Commerzbank's sound strategy and business profile, and its adequate financial profile, which is consistent with the current rating levels. The quality of the bank's loan book is satisfactory, its net exposure to structured credit investments is limited, and it continues to manage funding prudently. This view is underpinned by the still favorable domestic credit environment. Capitalization is adequate and a neutral factor for the ratings. The ratings are mainly constrained by the bank's structurally modest profitability, which continues to compare unfavorably with higher-rated peers through the
