The ratings on Commerzbank AG reflect the bank's market position as the fourth-largest private banking group in Germany, its overall sound asset quality and improved credit risk management, and its stable and diversified funding sources. The ratings are constrained by the bank's weak operating profitability levels, which are below those of its international peers, and its still moderate capitalization. With total consolidated assets of €506 billion at June 30, 2001, Commerzbank ranks among the 20 largest banking groups in Europe. As a universal bank, it offers a broad range of financial services to retail and wholesale customers. Commerzbank has set ambitious profitability targets, but failed to improve its core profitability, which, to a large extent, is a result of soaring
