Leading retail banking franchise in Czech Republic. Strong capitalization underpinned by sound earnings generation capacity. Strong liquidity position and sound retail-deposit funding profile. Geographic concentration in the Czech Republic. Exposure to the volatile commercial real estate sector. Earnings sensitivity to low interest rates. The negative outlook on Czech Republic-based bank Ceska Sporitelna A.S. reflects Standard&Poor's Ratings Services' view that the implementation of the EU Bank Recovery and Resolution Directive (BRRD) in the Czech Republic by the beginning of 2016 will decrease the likelihood of extraordinary government support for systemically important banks. We also believe that a potential introduction of a single resolution framework for cross-border banking groups within the EU, such as the Erste group, could lead to
