... Banka's Issuer Default Ratings (IDRs) are driven by the bank's standalone strength, as reflected in its Viability Rating (VR). The VR is the result of a strong company profile underpinned by leading market position, resilient franchise , and a conservative risk appetite. The ratings also reflect the bank's solid financial profiles. Conservative Risk Appetite: Prudent underwriting standards have translated into low loan default rates and earnings volatility through the cycle, helped by low exposure to volatile industries. Risk controls are robust and appetite for market risk is low. The bank's retail mortgage lending remains high, but the sector continues to perform well. The Czech National Bank's (CNB's) tight regulations should help manage cyclical risks. Robust Asset Quality: Komercni's lending is conservative and diversified, with moderate portfolio concentrations by industry and name, low impaired loans ratios and high loan loss allowance...
