Solid support and commitment from its foreign parent, to which it is highly strategically important; Strong retail banking franchise; Outstanding liquidity and funding profile; and Healthy financial profile. Higher-than-average economic and industry risks in the Czech Republic; Weak creditor rights; Untested credit dynamics in the fast-growing and immature retail segment, particularly real estate; and Medium-term challenges to maintain current positive revenue streams. The ratings on Czech Republic-based Ceska Sporitelna a.s. (CS) reflect its high strategic importance to Austria-based Erste Bank der oesterreichischen Sparkassen AG (Erste Bank; --/--/A-2), where it is considered a core rated entity; its solid domestic retail franchise, providing it with outstanding liquidity; and a solid financial profile--including good asset quality, satisfactory profitability, and adequate capital. Constraining factors
