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 credit risks related to rapid growth in the immature consumer lending market as well as in loans to small and midsize enterprises (SMEs). We view CS as a core member of Erste Bank. The long-term rating on CS includes a three-notch uplift from the bank's stand-alone credit profile to reflect Standard&Poor's Ratings Services' expectation of strong support from its majority owner. CS has played an
