The ratings on Germany-based Commerzbank AG continue to reflect its sound strategy and business profile and its adequate financial profile, which is consistent with the ratings. 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, which are mainly constrained by the bank's structurally modest profitability, which continues to compare unfavorably with that of higher-rated peers throughout the business cycle. This is partly the result of the bank's concentration on the German market, where industry risk is higher than in other European countries (for further
