The ratings on Deutsche Bank AG reflect the bank's position as the largest banking group in Germany, one of the most important financial institutions in Europe, and its improved position in selected areas of investment banking globally. The ratings are also based on the diversity of the bank's customer and earnings base, as well as an improving capital position and increased financial flexibility. These positive factors, however, continue to be partly offset by Deutsche Bank's still relatively low--although improving--core profitability, and unfavorable cost structures. The ratings also reflect Deutsche Bank's increased dependence on less predictable, and probably more volatile, income streams from its investment banking operations. With consolidated assets of €940 billion ($846 billion), adjusted total equity of €20.6 billion,
