Ceskoslovenska Obchodni Banka – Ratings Affirmed

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Ceskoslovenska Obchodni Banka (CSOB or the Bank) at ‘A’ and ‘A1’, respectively. At the same time, CI Ratings has affirmed CSOB’s Bank Standalone Rating (BSR) of ‘a’, Core Financial Strength (CFS) rating of ‘a’ and Extraordinary Support Level (ESL) of High. The Outlook for the LT FCR and BSR remains Stable.

The affirmation of CSOB’s LT FCR and BSR reflects the Bank’s strong financial metrics, along with expectations that its business model and solid domestic franchise will continue to support stable performance, albeit one that remains closely linked to the Czech macroeconomic environment. While there is a high likelihood of extraordinary support from its parent, the KBC Group, the intrinsic credit strength of the parent does not currently support any uplift for the LT FCR given…