Very strong capitalization, underpinned by high earnings generation. Solid retail banking franchise in the Czech Republic, with a sound retail-deposit funding profile. Benefits from ownership by Erste Group Bank. Purely domestic operations limit geographic diversification and expose the bank to swings in the Czech economy, as demonstrated with the economic downturn amid COVID-19. Large holdings of Czech sovereign debt securities are a tail risk. S&P Global Ratings' stable outlook on Czech Republic-based Ceska sporitelna, a.s. (Ceska) reflects that on its parent, Austria-based Erste Group Bank AG (Erste; A/Stable/A-1). We expect Ceska will remain a core subsidiary of Erste, and consider that Ceska would likely benefit from parental support under any foreseeable circumstances. A negative rating action on Erste within the
