The ratings on Hungary-based Magyar TakarTksz÷vetkezeti Bank Rt. (TakarTkbank; Bank of Hungarian Savings Co-operatives Ltd.) are based on its key position as clearing bank and business coordinator within the Hungarian savings cooperative bank (SC) network; resulting strong liquidity; and improving efficiency, albeit from a low level. The ratings remain constrained by TakarTkbank's modest position in an increasingly competitive market; the bank's still moderate profitability; concentration risk in the loan portfolio; a low capital base; and the underdeveloped cohesion within the SC sector. The ratings also reflect the bank's exposure to higher-than-average economic and industry risks in Hungary. Standard & Poor's Ratings Services factors the SC sector's creditworthiness into the ratings on TakarTkbank. The financial strength of the SC sector is
