We forecast that Erste Bank Group's (Erste's) risk-adjusted capital ratio will be 11.5%-12.0% through end-2026 as it maintains strong regulatory capitalization and solid earnings generation capacity. Erste's strong franchise and competitive position across its operating jurisdictions and robust risk management continue to underpin its credit profile. We now incorporate a one-notch negative comparable rating analysis adjustment in the ratings because we think Erste's creditworthiness remains comparable with peers with 'a' group stand-alone credit profiles. We therefore affirmed our 'A+/A-1' issuer credit ratings on Erste and all related debt instruments. The stable outlook reflects our expectation that Erste will deliver on its strategic plan and its creditworthiness will remain robust over the next two years, driven by sound profitability and capitalization
