The ratings on Deutsche Bank AG are based on the group's strong market position and franchise in some of its business lines, sound risk management, good liquidity, and a satisfactory capital base. The ratings also reflect Standard&Poor's expectation of further improvements in profitability, which is still lagging that of many similarly or higher rated international banks. Despite recent improvements in retail banking, Deutsche Bank is likely to continue exhibiting a relatively high reliance on investment-banking activities, partly reflecting the difficult domestic banking environment and its weaker position in private-wealth management compared with some of its peers. Deutsche Bank maintains strong market positions in many areas of corporate and investment banking, particularly in debt sales and trading in Europe,
