The ratings on Hungary-based OTP Bank Rt. (OTP) reflect the bank's commanding position in, and significance to, the Hungarian financial system; its sound financial profile; and the successful development into an extensive financial services group. The bank's dominant domestic standing results in strong links between its risk profile and operating performance and trends in the domestic economy. The rating is constrained by the bank's expansion strategy into riskier neighboring countries and domestic small and midsize enterprise (SME) business. OTP Group maintains its dominant position despite fierce and intensifying competition. Its retail lending market share of 42% is decreasing, however, due to the sector's growing attractiveness to other banks. OTP has effectively transformed itself into a fully-fledged financial services group and
