The public information ('pi') rating on Hungary-based OTP Bank Rt. (OTP) reflects its commanding position in the Hungarian financial system, which is especially strong in the retail segment and features a well diversified product offering, and the bank's robust profitability and strong funding profile. The rating is constrained by the bank's exposure to the higher-than-average economic and industry risk in Hungary, and an aggressive acquisition strategy in eastern and southeastern Europe. The accelerating international expansion is inducing potential operational risk, a negative influence on asset quality, a lower contribution to profitability than to assets, and only-average capitalization on a risk-adjusted basis. OTP is the leading financial services group in Hungary, with a market share of 24.4% in system assets at
