The ratings on Germany-based Commerzbank AG reflect its improved earnings trend, following a successfully managed turnaround, and its solid franchise in Germany in corporate and private customer business. Although structural improvements increasingly mitigate the risk of setbacks in less favorable times, the primary negative rating factors are remaining concerns about the bank's potential vulnerability to cyclical swings. This reflects low domestic market shares and low profit contribution from banking with private customers and wealth management, and the dominance of wholesale banking and treasury activities (including public finance) in Commerzbank's business mix. At the same time, Commerzbank's franchise abroad is not sufficiently strong to offset the higher economic and industry risk in Germany to which it is exposed. The current level
