The public information ('pi') rating on Hungary-based OTP Bank Rt. (OTP) reflects the bank's commanding position in, and significance to, the Hungarian financial system; its sound financial profile; and the successful development into a diversified 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. In addition, interest and foreign exchange rate volatility heightens the Hungarian banking sector's economic risks. The rating is constrained by the bank's ambitious geographical expansion strategy, rapid loan growth, and growing domestic SME business. With total assets of Hungarian forint (HUF) 3.6 trillion (€14.2 billion at HUF254 to €1) at June 30, 2004, the OTP group maintains its top position
