Following the outlook revision to negative from stable on Jan. 30, 2008, the ratings on Deutsche Bank AG continue to reflect its excellent and diversified investment-banking franchise; a favorable view of management, which has successfully executed its focused growth strategy; and satisfactory performance in light of the difficult market conditions. (For more information, see "Outlooks Revised On Various European Banks Due To Continued Capital Market Weakness," published on Jan. 30, 2008, on RatingsDirect.) The ratings are constrained by the cyclical sensitivity of profitability to capital markets conditions; and still middling earnings levels in parts of its asset- and wealth-management activities. Deutsche Bank's group performance remains satisfactory with an operating pretax margin of 21% in the third quarter of 2007. Favorable
