Dominant domestic market position Strong business and earnings diversification in Central and Eastern Europe (CEE) Strong profitability Good liquidity, but the need for longer-term international funding is increasing Vulnerable to potentially volatile and risky operating environment in CEE countries High credit risks from rapid loan growth and significant domestic foreign currency lending Moderate capitalization The ratings on Hungary-based OTP Bank Rt. reflect the bank's dominant domestic market position, strong and soundly managed business and earnings diversification in Central and Eastern Europe (CEE), strong profitability, and good liquidity, although the need for longer-term international funding is increasing. These factors are partly offset by the bank's vulnerability to potentially volatile and risky operating environments in CEE countries, high credit risks from rapid
