Weak position in increasingly competitive market; Loan and sector concentrations; Poor albeit improving profitability; Volatile economic environment; Underdeveloped cohesion within savings cooperative sector; and Changing ownership, which raises some strategic uncertainty. Robust liquidity and prudent capital management; Strengthened risk management supported by upgraded IT and MIS; Organizational restructuring and turnaround completed; and Solidarity among savings cooperatives underpinned by a protective scheme. The ratings on Hungary-based Magyar TakarTksz÷vetkezeti Bank Rt. (Bank of Hungarian Savings Co-operatives Ltd.; TakarTkbank) are based on its relatively humble position in an increasingly competitive market; concentration risks; poor, albeit improving, profitability; and vulnerability to market risk in a volatile economic environment. The ratings also reflect the potential for tighter cohesion among the 159 savings cooperatives that are
