We consider Czech Republic-based Ceska Sporitelna to be a "core" subsidiary of Austrian banking group Erste Group Bank AG under our group rating methodology, and therefore equalize the ratings on the subsidiary with those on the group. On Dec. 5, 2011, we placed the 'AAA' long-term sovereign credit ratings on the Republic of Austria on CreditWatch with negative implications. As a result, and mirroring the rating action on Erste, we are placing the 'A/A-1' long-and short-term counterparty credit ratings on Ceska Sporitelna on CreditWatch with negative implications. Under our revised bank criteria (published on Nov. 9, 2011), our ratings on Ceska Sporitelna reflect its 'bbb' anchor for a bank operating in the Czech Republic and our view of its adequate
