On July 30, 2008, Standard&Poor's Ratings Services assigned its 'BBB+' long-term and 'A-2' short-term counterparty credit ratings to Hungary-based OTP Bank Rt. (OTP) and OTP Mortgage Bank. At the same time, Standard&Poor's withdrew its 'BBBpi' unsolicited public information rating on OTP. The outlook on both entities is negative. The ratings on OTP reflect its dominant domestic market position, strong and soundly managed business and earnings diversification in Central and Eastern Europe (CEE), and strong profitability. These factors are partly offset by the potentially volatile and risky operating environment in CEE countries, credit risks from rapid loan growth and significant domestic foreign currency lending, and the bank's moderate capitalization. The ratings on OTP Mortgage Bank are equal
