The ratings on Deutsche Bank AG are based on the excellent market position of the bank's investment banking franchise and the expectation of stable profit contributions from its other business lines. The ratings also reflect the bank's higher diversification into less market-sensitive business lines compared with the major independent U.S. broker-dealers. A favorable view of management and a sound liquidity position are additional positive factors. The ratings are constrained because Deutsche Bank generates the majority of its earnings from securities sales and trading as well as corporate finance, and is therefore exposed to the same adverse industry trends affecting other major players in the securities industry. In addition, it is exposed to a deterioration of its leveraged-finance and commercial real
