Very strong capitalization, underpinned by sound earnings generation. Leading retail banking franchise in the Czech Republic, with a sound retail-deposit funding profile. Benefits from its status as core subsidiary of Erste Group Bank. Purely domestic operations limit geographic diversification. Some exposure to the cyclical construction and real estate sector. S&P Global Ratings' positive outlook over our horizon of 24 months on Czech Republic-based Ceska sporitelna, a.s. reflects that on its parent, Austria-based Erste Group Bank AG (A/Positive/A-1). We expect Ceska to remain a core subsidiary of Erste, and consider that Ceska would be likely to benefit from parental support under any foreseeable circumstances. A positive rating action on Erste due to strengthened capitalization, as measured by our risk-adjusted capital (RAC)
