Various Rating Actions Taken On Four Czech Banks On Continued Economic Recovery

Czech Republic has displayed economic growth for the third year in a row, with increasing consumer confidence and household disposable income supporting positive developments in the housing market. We believe the country is on a balanced growth path and economic imbalances have reduced; therefore we believe the Czech banking sector has strengthened and have reclassified it to BICRA group '3' from group '4'. We have also revised our anchor for rating Czech banks to 'bbb+' from 'bbb'. We are raising our ratings on Ceska Sporitelna to 'A/A-1' from 'A-/A-2', while affirming our 'A/A-1' ratings on Ceskoslovenska Obchodni Banka (CSOB) and Komercni Banka, and our 'BBB/A-2' ratings on MONETA Money Bank. The negative outlook on Ceska Sporitelna reflects remaining uncertainties on

...+ Czech Republic has displayed economic growth for the third year in a row, with increasing consumer confidence and household disposable income supporting positive developments in the housing market. + We believe the country is on a balanced growth path and economic imbalances have reduced; therefore we believe the Czech banking sector has strengthened and have reclassified it to BICRA group '3' from group '4'. We have also revised our anchor for rating Czech banks to '###+' from '###'. + We are raising our ratings on Ceska Sporitelna to 'A/A-1' from 'A-/A-2', while affirming our 'A/A-1' ratings on Ceskoslovenska Obchodni Banka (CSOB) and Komercni Banka, and our '###/A-2' ratings on MONETA Money Bank. + The negative outlook on Ceska Sporitelna reflects remaining uncertainties on how Czech Republic's resolution law will apply to the bank in the context of its Austrian parent's status as a systemic European banking group under EU resolution legislation. + The stable outlooks on CSOB and Komercni...

Ratings Action