The ratings on Czech bank Ceska Sporitelna a.s. (CS) reflect both its "core" status within its 98% owner, Austria-based Erste Group Bank AG (Erste; A/Stable/A-1), and its leading position in the stable CZ retail banking market. In Standard&Poor's Ratings Services' view, CS' financial profile is satisfactory overall. Still, we have observed a gradual shift toward riskier asset classes in the past years, and this has moderately increased, in our view, the bank's historically low credit risk profile. CS is the largest bank in the Czech Republic (foreign currency A/Positive/A-1, local currency A+/Stable/A-1) by loans and deposits, with 21% and 23% market shares, respectively, in 2010. Originally the state savings bank, CS is the leading retail bank serving more
