A core subsidiary of OTP Bank Rt. Close operational and organizational integration with OTP The leading player in mortgage lending in Hungary High credit risks arising from rapid loan growth and significant foreign currency lending Low profitability Moderate capitalization The ratings on Hungary-based OTP Mortgage Bank (OTPMB) are equal to those on its parent OTP Bank Rt. (OTP; BBB+/Negative/A-2) because of the bank's core strategic status and close organizational and operational integration with its parent. The ratings also reflect the bank's leading position in mortgage lending in the Republic of Hungary (foreign and local currency BBB+/Negative/A-2). These positive rating factors are somewhat offset by high credit risks stemming from rapid loan growth, significant foreign currency lending, low profitability, and moderate
