Dominant retail market position in Hungary with solid domestic retail deposit base. High share of granular collateralized homeowner loans and geographic diversification in Central and Eastern Europe (CEE). High systemic importance in Hungary, and demonstrated liquidity support by the National Bank of Hungary. Strong pre-provisioning earnings, which serve as a buffer against elevated impairment costs and new special banking taxes. Heightened credit risk, particularly in some foreign markets, and significant domestic foreign currency lending. Likely continued pressure on OTP's asset quality and earnings over the next year. Ongoing pressure on economic and industry conditions in the more risky of CEE markets in which OTP operates. The ratings on OTP Bank PLC are supported by its strong domestic retail franchise, particularly
