We acknowledge that Savings Cooperatives Group Hungary's (the group's) restructuring has gained pace and expect this will aid its turnaround. We think that the supportive environment for bank operations in Hungary gives management time to successfully finalize the transformation process, but that capital has been stretched following years of strong asset growth and subdued performance. We are affirming our 'BB/B' long- and short-term issuer credit ratings on the group's core member MTB Magyar Takarekszovetkezeti Bank Zrt. (MTB; former Magyar Takarekszovetkezeti Bank ZRT or Takarekbank). The outlook is stable, reflecting our view that MTB will remain core to the group despite a material change in its functions, and that the ongoing restructuring is likely to be sufficient to ensure group resilience
