Solid support and commitment from its foreign parent. Good retail banking franchise providing a resilient revenue stream. Improved efficiency. Satisfactory funding profile. Shift of business profile toward higher-risk consumer loans and financing to SMEs. Increasing credit losses. Business concentration on the Czech Republic. Significant 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 Group Bank AG (Erste Bank; A/Negative/A-1), and resultant parental commitment, as well as the bank's good retail banking franchise and strong funding and liquidity profile. Negative rating factors include the credit risks related to rapid growth in the immature consumer lending market as well as in loans
