Summary: Ceska Sporitelna A.S.

Leading retail banking franchise in Czech Republic. Very strong capitalization underpinned by sound earnings generation capacity. Strong liquidity position and sound retail-deposit funding profile. Core subsidiary of Erste Group Bank. Limited geographic diversification. Some exposure to the volatile commercial real estate sector. Earnings sensitivity to low interest rates. S&P Global Ratings' positive outlook on Republic-based Ceska Sporitelna A.S. reflects that on its parent, Erste. A positive rating action on Erste would likely translate into a similar rating action on its core entity in the next 24 months because we would likely incorporate uplift for group support into our rating on Ceska. We could revise the outlook to stable, if we took a similar action on Erste. We could also revise

...Earnings sensitivity to low interest rates. Outlook: Positive S&P Global Ratings' positive outlook on Republic-based Ceska Sporitelna A.S. reflects that on its parent, Erste. A positive rating action on Erste would likely translate into a similar rating action on its core entity in the next 24 months because we would likely incorporate uplift for group support into our rating on Ceska. We could revise the outlook to stable, if we took a similar action on Erste. We could also revise the outlook to stable, if we saw a material risk that Ceska's ownership could be disentangled from Erste in case of resolution. This could be the case if, contrary to our base-case expectations, Ceska were to issue material volumes of external MREL capital instruments....

Summary