S&P lifts Komercni Banka

Standard & Poor's said it raised its long-term counterparty credit ratings on Komercni Banka AS (KB) to A- from BBB+ and removed them from CreditWatch, where they had been placed with positive implications on June 30.

At the same time, the A-2 short-term ratings on the bank were affirmed. The outlook on the local currency ratings is positive and the outlook on the foreign currency ratings is stable, S&P said.

The agency noted the upgrade reflects KB's strategic importance to Société Générale's (AA-/stable/A-1+) emerging market retail expansion.

Constraining rating factors include the Czech Republic's still weak creditor rights and the potential system-wide risks from the build-up of rapid growth in the immature retail market, S&P added.

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