Solid support and commitment from its foreign parent Good retail banking franchise Strong liquidity and funding profile Medium-term challenges to maintain current positive revenue streams Untested credit dynamics in the fast-growing and immature retail segment, particularly real estate Pressure on profitability Increasing exposure to the real estate sector The ratings on the Czech Republic-based bank Ceska Sporitelna a.s. (CS) reflect its importance as a core entity to its parent--Austrian Erste Bank der oesterreichischen Sparkassen AG (Erste Bank; A/Stable/A-1) and resultant parental commitment, its good retail banking franchise, and strong funding and liquidity profile. Negative rating factors include the increasingly competitive banking market and credit risks related to rapid loan growth in the immature retail market. The long-term rating includes a
