The public information ('pi') rating on Hungary-based OTP Bank Rt. (OTP) reflects the bank's commanding position in the Hungarian financial system, its sound financial profile, and the successful development into a diversified financial services group. The rating is constrained by the bank's ambitious regional-expansion strategy and rapid loan growth. Its dominant domestic standing results in strong links between its risk profile and the operating performance of the domestic economy, and is prone to interest rate volatility, with a series of interest rate cuts totaling 3.5% in 2005. OTP is the leading financial services group in Hungary, with a market share of 24% of system assets at Sept. 30, 2005. OTP has maintained its dominant position in retail banking, where it
