Erste Group Outlook Revised To Positive On Effective Resolution Strategy And Loss-Absorption Buffers; 'A/A-1' Affirmed

We think Erste Group Bank AG (Erste) and its subsidiaries are making progress in strengthening their additional loss-absorbing capicity (ALAC) buffers, which provide protection to senior creditors in a resolution scenario. The group is effectively operating under a multiple point of entry strategy, implying that each of the six resolution groups would enter a separate resolution path from its parent, in the unlikely scenario of nonviability. We therefore revised our outlook on Erste to positive from stable and affirmed our 'A/A-1' issuer credit ratings. The positive outlook reflects our expectation that Erste could build sufficient bail-in-able buffers to merit rating uplift for ALAC during 2022. FRANKFURT (S&P Global Ratings) Sept. 29, 2021--S&P Global Ratings today revised its outlook on Erste

...September 29, 2021 - We think Erste Group Bank AG (Erste) and its subsidiaries are making progress in strengthening their additional loss-absorbing capicity (ALAC) buffers, which provide protection to senior creditors in a resolution scenario. - The group is effectively operating under a multiple point of entry strategy, implying that each of the six resolution groups would enter a separate resolution path from its parent, in the unlikely scenario of nonviability. - We therefore revised our outlook on Erste to positive from stable and affirmed our 'A/A-1' issuer credit ratings. - The positive outlook reflects our expectation that Erste could build sufficient bail-in-able buffers to merit rating uplift for ALAC during 2022. FRANKFURT (S&P Global Ratings) Sept. 29, 2021--S&P Global Ratings today revised its outlook on Erste Group Bank AG (Erste) to positive from stable. We also affirmed the 'A/A-1' long- and short-term issuer credit ratings and the 'A+' resolution counterparty ratings on...

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