Dominant retail market position in Hungary, Bulgaria, and Croatia, with solid domestic retail deposit base. Sustainably high risk-adjusted margins. Highly granular funding base and strong liquidity cushion. Potential execution risks from the recent and ongoing acquisitions in the CEE. High legacy nonperforming loans (NPLs). The outlook on our ratings on OTP Bank is stable. Reflecting the improved economic and industry risk environment in Hungary and stabilization of the risks in foreign operations, we expect continued gradual recovery of operational performance, supporting our forecast for OTP Bank to maintain a risk-adjusted capital (RAC) ratio of close to 8.5% during the next 18-24 months. A positive rating action on OTP Bank over the next two years would hinge on us taking a
