Support from the savings cooperatives sector Strong funding and liquidity profile as the central clearer for the savings cooperatives sector High systemic importance of Takarekbank and the savings cooperatives sector in Hungary Deteriorating asset quality and earnings of Takarekbank's and the savings cooperatives sector Takarekbank's low capitalization amid worsening economic and industry conditions in Hungary Heightened credit risk from unseasoned loan growth, domestic foreign currency lending, and loan concentrations The ratings on Hungary-based Magyar Takarékszövetkezeti Bank zRt. (Takarékbank; Bank of Hungarian Savings Cooperatives Co. Ltd.) are constrained by mounting macroeconomic and industry risks in the Republic of Hungary, increasing the likelihood of severe repercussions on Takarékbank's financial profile. Particularly, we are concerned that asset quality and earnings could deteriorate considerably
