Fitch Ratings: Aff Deutsche Bank L-T Rtg 'AA'; Dwgr Ind Rtg.

Business Editors

LONDON--(BUSINESS WIRE)--Feb. 13, 2002

Fitch Ratings, the international rating agency, has downgraded Deutsche Bank's Individual rating to 'B/C' from 'B' and at the same time has affirmed its long-term rating at 'AA', removing both from Rating Watch Negative. A Negative Rating Outlook is in place for the long-term rating. The short-term and support ratings are affirmed at 'F1+' and '1'.

The rating action reflects Deutsche Bank's currently low underlying profitability, mainly burdened by its high cost base and low revenue generation from its private client and asset management (PCAM) business. It takes into account the difficult global operating environment, which will make it hard for Deutsche Bank to maintain revenue from investment banking at the same level in 2002, and may lead to loan loss provisions continuing to be relatively high this year. The group is in a transition phase, with the full effects of restructuring not expected to feed through until 2003. Further restructuring costs are to be taken in 2002, which will also put pressure on the bank's bottom line. However, Deutsche Bank's good risk management systems and strong capital should enable it to come through this difficult year without too much damage.

The Negative Rating Outlook reflects Fitch's concerns regarding the bank's ability to restore core profitability rapidly. Throughout the coming year, Fitch will be paying particularly close attention to the bank's progress in:

-- Maintaining revenue from its investment banking operations at strong levels, in spite of what will probably be more hostile conditions;

-- Improving the profitability of its retail/private customers business in Europe;

-- Returning Zurich Scudder Investments to profitability and integrating its business;

-- Reducing its overall cost base;

-- Maintaining loan loss provisions at a manageable level.

The following, connected, ratings have also been removed from Rating Watch Negative and affirmed: the 'AA-' (AA minus) Long-term and 'F1+' Short-term ratings of Bankers Trust Corp., Bankers Trust Company, Deutsche Alex Brown, and Deutsche Trust Bank, and the 'AA-' (AA minus) ratings of Deutsche Bank Capital Funding Trusts I, II, III.

Note to Editors: Fitch Ratings's Support and Individual Ratings for Banks

Fitch's Individual ratings assess how a bank would be viewed if it were entirely independent and could not rely on external support. Its Support ratings deal with the question of whether a bank would receive support from its owners or from the state if it were to get into difficulty. These ratings are not debt ratings but rather, respectively, an assessment of the intrinsic strength of a bank and of any level of outside support that may, or may not, be available to it.