The ratings on Hungary-based Magyar TakarTksz÷vetkezeti Bank Rt. (Bank of Hungarian Savings Cooperatives Ltd.; TakarTkbank) are based on its relatively modest position in its core market; concentration risks; weak core capital; and low profitability, which is vulnerable to market risk in a volatile economic environment. The ratings also reflect the underdeveloped cohesion with its majority owners--the members of the National Association of Savings Cooperatives (OTSZ)--which constrains TakarTkbank's commercial and financial potential. TakarTkbank is considered by Standard & Poor's Ratings Services to be a strategically important component of the SC banking sector. The ratings are supported by TakarTkbank's robust liquidity, strengthened risk management and systems, and the completion of its restructuring, which should allow maximization of business opportunities. The financial strength
