The ratings on Deutsche Bank AG are based on its very strong, diversified franchise in the corporate banking and securities business; its strongly improved profitability; and its strategy to contain credit and market risk exposures, as well as its diversified funding sources. This is partly offset by a higher sensitivity of earnings to financial-market conditions compared with more retail-oriented universal banks, a somewhat higher capital leverage compared with several U.S. broker peers, and the low profitability in areas of its asset-management operations. Deutsche Bank maintains solid positions in most areas of corporate and investment banking, underpinned by persistent top-tier positions in terms of revenues. Due to the highly diversified nature by products, clients, and geography, its franchise should demonstrate sound
