The ratings on Hungary-based OTP Bank Rt. (OTP) reflect the bank's dominant domestic market position, soundly managed business and earnings diversification in Central and Eastern Europe (CEE), and good profitability. The ratings are constrained by the increasing economic risks and more volatile operating environment in the Republic of Hungary (BBB/Negative/A-3) and other CEE countries, as well as OTP's high credit risk and 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 countries where the government relies mainly on prudent policies to maintain a sound banking sector,
