(The following statement was released by the rating agency)
May 30 -
Summary analysis -- Ceska Sporitelna A.S. ------------------------- 30-May-2012
CREDIT RATING: A/Negative/A-1 Country: Czech Republic
Primary SIC: Commercial banks,
Credit Rating History:
Local currency Foreign currency
25-Oct-2007 A/A-1 A/A-1
25-Aug-2005 A-/A-2 A-/A-2
The negative outlook on Czech bank Ceska Sporitelna (CS) mirrors that on Erste Group Bank AG (Erste; A/Negative/A-1), based on Standard & Poor’s Ratings Services’ view of CS’ status as a “core” subsidiary, under its criteria. As a result, and as long as we continue to view CS as a core subsidiary, an upgrade or downgrade of Erste would prompt a similar action on CS.
Any change in our view of CS’ core status could prompt us to downgrade CS, because we would reduce the number of notches of uplift for parental support that we factor into the ratings. Although unlikely at this stage, we could reassess CS’ core status if Erste were to question its majority ownership in CS, reconsider its strategy for Central and Eastern Europe and the Czech Republic in particular, or if CS’ operating performance were to structurally underperform compared with Erste’s other businesses and affiliates.