...FRANKFURT (S&P Global Ratings) March 23, 2017--S&P Global Ratings said today that its ratings and outlook on Hungary-based Magyar TakarTksz÷vetkezeti Bank Zrt. (Takarekbank; ##/Positive/B) are not immediately affected by the bank's announcement of the merger plans between cooperative credit institutions within the group. According to the announcement from Takarekbank CEO Jozsef Vida, the savings cooperatives group aims to shrink to about 12 regional cooperative banks by the end of 2017. There are now 52 credit cooperatives within the group, having dropped to 69 in September 2016 from 120 in 2014. The announcement points to the continued integration and restructuring of the savings cooperative group in Hungary. We understand that the mergers with adjacent regional cooperative banks aim to increase efficiency in the sector by generating strategic, operational, and regulatory synergies. Our rating on Takarekbank is based on the aggregate creditworthiness of the savings cooperative group, which...
