The public information ("'pi"; unsolicited) rating on Hungary-based OTP Bank Rt. reflects the bank's dominant domestic market position, increasing business and revenue diversification, and strong profitability. These positive rating factors are offset by higher-than-average economic and industry risks associated with operating in Eastern Europe, tight capitalization, and increasing credit risks. OTP is the dominant bank operating in the competitive Hungarian banking sector, with a market share of total assets of 25.2% at Sept. 30, 2007. It is a diversified financial services group, providing pension services, life and non-life insurance, factoring, investment management, leasing, and car financing. Furthermore, the bank is increasing its geographic diversification with international acquisitions in Eastern Europe. This has boosted revenue diversification but opened the bank to
