Research Update: Austria-Based Erste Group Bank 'A/A-1' Ratings Placed On Watch Negative Following Sovereign Rating Action Dec 11
- Language: English
- Published: December 2011
The ratings on Erste Group Bank AG (Erste Bank; formerly Erste Bank der oesterreichischen Sparkassen AG) are based on the bank's prominent market position in Austria and several countries in Central and Eastern Europe (CEE) and the continued profitability improvements in large parts of the group. The ratings also reflect Standard & Poor's Ratings Services view of Erste Bank and the Austrian savings banks as a single economic group, despite the new group structure, which was formalized on Aug. 10, 2008, and resulted in the spin-off of its Austrian business into a wholly owned subsidiary. The holding company will retain its own banking activities, mainly treasury, corporate finance, and investment banking. These organizational changes are intended to increase the group's...
Companies mentioned in this report are:
- Erste Group Bank AG
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