The ratings on the Czech Republic-based bank Ceska Sporitelna a.s. (CS) reflect its importance as a core entity to its parent, Austrian Erste Group Bank AG (Erste Bank; A/Negative/A-1), and resultant parental commitment, as well as the bank's good retail banking franchise and strong funding and liquidity profile. Negative rating factors include the increasingly competitive banking market and credit risks related to rapid loan growth in the immature retail market. The long-term rating includes a three-notch uplift from the bank's stand-alone creditworthiness to reflect Standard&Poor's Ratings Services' expectation of strong support from its majority owner. We view CS as a core member of Erste Bank, whose support has allowed CS to retain its solid domestic retail franchise and
