The ratings on Hungary-based OTP Bank Rt. reflect the bank's dominant domestic market position, strong and soundly managed business and earnings diversification in Central and Eastern Europe (CEE), strong profitability, and good liquidity, although the need for longer-term international funding is increasing. These factors are partly offset by the bank's vulnerability to potentially volatile and risky operating environments in CEE countries, high credit risks from rapid loan growth and significant domestic foreign currency lending, and the bank's moderate capitalization. The ratings mirror OTP's stand-alone credit quality and do not include any uplift for extraordinary external support. Standard&Poor's Ratings Services considers OTP to be a systemically important bank in Hungary. However, in line with our rating approach in supportive
