Research Update: Ceska Outlook Revised To Positive On Effective Resolution Strategy And Loss-Absorption Buffers; Affirmed At 'A/A-1'

We think Ceska sporitelna a.s. (Ceska) is making progress in strengthening its additional loss-absorbing capacity (ALAC) buffers within its parent's multiple point of entry resolution strategy. After issuing €500 million of senior nonpreferred notes on Sept. 13, 2021, Ceska has a substantially higher buffer of loss-absorbing instruments, providing more protection to senior preferred creditors in a resolution scenario. We therefore revised our outlook on Ceska to positive from stable and affirmed our 'A/A-1' issuer credit ratings. The positive outlook reflects our expectation that Ceska could build up sufficient bail-in-able buffers to merit rating uplift for ALAC during 2022. On Sept. 29, 2021, S&P Global Ratings revised the outlook on Ceska sporitelna a.s. (Ceska) to positive from stable. At the same

...- We think Ceska sporitelna a.s. (Ceska) is making progress in strengthening its additional loss-absorbing capacity (ALAC) buffers within its parent's multiple point of entry resolution strategy. - After issuing 500 million of senior nonpreferred notes on Sept. 13, 2021, Ceska has a substantially higher buffer of loss-absorbing instruments, providing more protection to senior preferred creditors in a resolution scenario. - We therefore revised our outlook on Ceska to positive from stable and affirmed our 'A/A-1' issuer credit ratings. - The positive outlook reflects our expectation that Ceska could build up sufficient bail-in-able buffers to merit rating uplift for ALAC during 2022....

Research Update