Dominant retail market position in Hungary. Solid domestic retail deposit base. High share of granular collateralized homeowner loans. High systemic importance in Hungary, and demonstrated liquidity support by the National Bank of Hungary. OTP's asset quality and earnings are likely, in our view, to remain under pressure over the next year. Deteriorated economic and industry conditions in the more risky of the central and eastern European markets where OTP operates. Heightened credit risk from rapidly expanded book of loans, particularly in some foreign markets, and significant domestic foreign currency lending. Moderate capitalization and tightened financial flexibility. The ratings on Hungary-based OTP Bank PLC are constrained by the ongoing asset quality and earnings pressure. In addition, currently, capitalization is only moderate
