...Stable Rating Outlook: The overall rating outlook for banks in central and eastern Europe (CEE) is stable. The proportion of Stable Outlooks for banks increased in 2015 following downgrades in May 2015 resulting from downward revisions of Support Rating Floors (SRFs) in the EU. Positive Outlooks relate to support-driven ratings of Hungarian banks and Commerzbank AG subsidiaries in Poland. IDRs driven by Viability Ratings (VRs) are predominantly on Stable Outlook, including some where a subsidiary is rated above, or in line with, its parent. The exception is Bank Ochrony Srodowiska (Poland), whose IDRs are on Negative Outlook. Stable Sector Outlooks: Sector outlooks are generally stable as systemic risks continue to recede and inflows of new NPLs have reduced. Loss-absorption capacity has improved with largely stable pre-impairment profitability and stronger capital positions. However, operating environments remain difficult, lending growth is subdued and resolution of legacy portfolios...
