...June 7, 2022 FRANKFURT (S&P Global Ratings) June 7, 2022--S&P Global Ratings said today that it believes OTP Bank PLC (OTP)'s consumer finance joint venture (JV) with undisclosed partners in China has long-term potential. In our view, OTP's (###/Stable/A-2) JV, announced on June 3, 2022, will have no significant effects on the group's profile in the short-to-medium term but may ultimately provide a valuable touch point for, and access to, the large Chinese consumer finance market. If it proves successful, which will likely take several years, the JV could accelerate OTP's longer-term expansion outside Hungary. This would add to revenue but potentially shift the risk profile to an unclear balance. Although we believe that risks for the minority stake JV are currently contained, we note the high operational challenges associated with OTP's inorganic growth, especially in places far from its home market. It will require extra effort from management to fully understand an investment in a geographically...
