The ratings on Hungary-based OTP Bank Rt. (OTP) reflect the bank's strong position and significance to the Hungarian financial system, an important supporting factor in the assessment of OTP's creditworthiness; its stable financial profile; and the successful development into an extensive financial services group. The rating is constrained, however, by continuing pressure on the bank's efficiency. OTP Group has maintained its dominant position in the Hungarian financial markets despite fierce and intensifying competition. The group's leading market position in its traditional segments--retail and municipal--both on the asset and liability sides, remains solid. Its retail lending market share is decreasing, however, due to the growing attractiveness of the sector for other banks in the system. OTP has effectively transformed itself into
