The ratings on Commerzbank AG reflect its overall sound credit risk and asset liability management and domestic franchise among private and corporate customers, which provides it with a sound and diversified funding base. The ratings also reflect Commerzbank's commitment to execute a range of strategic and further cost-cutting initiatives to achieve modest operating profits in 2003, and to gradually improve its profitability levels and capital ratios in a less severe operating environment. As Standard&Poor's does not expect a quick recovery, however, it remains concerned that in a prolonged economic downturn Commerzbank's initiatives might not yet be sufficient to avoid further deterioration in its business and risk profile. The primary negative rating factors are the bank's weak profitability, its
