...Standalone Strength Drives Ratings: Slovenska Sporitelna's Issuer Default Ratings (IDRs) and Stable Outlook are driven by its standalone creditworthiness, as expressed in its Viability Rating (VR) of `bbb+'. The VR reflects Slovenska's conservative risk appetite, strong capitalisation, stable funding based on customer deposits and ample liquidity. Healthy asset quality and solid profitability through-the-cycle is underpinned by the bank's well-established domestic franchise, consistent strategy and supportive operating environment. Stable Asset Quality: Asset quality should remain stable due to Slovenska's strict underwriting standards, a strong control environment and tight parental supervision, coupled with falling unemployment in Slovakia and low interest rates. Reserve coverage of impaired loans is reasonable, given largely collateralised lending and a high loss-absorption capacity. Robust Capitalisation: Capitalisation is a considerable rating strength and benefits from solid profitability...
