With the planned acquisition of Santander Bank Polska (SBP), Erste Group Bank will add a key piece to its already developed Central and Eastern European (CEE) franchise, although at a significant price. The all-cash offer will temporarily hit the group?s capital ratios, however, we expect the bank will maintain strong capital and earnings going forward. This view assumes that Erste will not announce any further acquisitions in the next two to three years, and that integration costs will be limited. We have therefore affirmed our 'A+/A-1' long- and short-term issuer credit ratings on Erste Group Bank. We also affirmed the ?AA-/A-1+? resolution counterparty ratings. The positive outlook reflects our view that Erste will maintain a resilient balance sheet and strong
