The ratings on Hungary-based Magyar Takarekszovetkezeti Bank ZRt. (Takarekbank; Bank of Hungarian Savings Cooperatives Co. Ltd.) reflect Standard&Poor's Ratings Services' view of the bank's vulnerable capital position, weakened profitability owing to Hungary's special banking tax, and continuous deterioration in the asset quality of savings cooperatives (SCs). The ratings are based on our view of the bank's link with and support from its 61.53% majority shareholder, the SCs sector. Under our criteria, this provides Takarekbank with a one-notch uplift from its stand-alone credit profile. The ratings are supported by our view of the bank's strong funding and liquidity profile as a central bank for the SCs sector, as well as its asset quality, which we view as better than
