We believe the strong consolidated funding and liquidity ratios we observe at the Erste group level are now also evident at the main operating subsidiaries. We consider that Erste's financial profile strengthened materially in 2016, owing to the group's portfolio clean-up, stronger earnings, and, in turn, higher earnings retention, which reflect the stable to improving operating environment in Erste's principal markets. We are upgrading Erste to 'A-/A-2' from 'BBB+/A-2'. The outlook is positive, reflecting our view that Erste might start to build up a buffer of gone-concern, bail-in-able instruments over the next two years that could merit rating uplift for additional loss-absorbing capacity. On March 14, 2017, S&P Global Ratings raised its long-term issuer credit rating on Erste Group Bank
