The ratings on Deutsche Bank AG are based on the group's position as one of the most important financial institutions in Europe, and its strong market positions in selected areas of investment banking and asset management globally, as well as in retail and private banking in Germany and selected European countries. The ratings also reflect the diversity of the group's revenue and customer base and its derived distribution strength benefiting its investment banking and asset-management operations. The ratings are underpinned by an improved core capital position and the group's financial flexibility provided by sizable--although reduced--unrealized gains in the bank's investment portfolio. These positive factors are partly offset by Deutsche Bank's weak core profitability and unfavorable cost structures in most of
